| Fixed Rate Mortgages |
a mortgage with a fixed interest rate for the
life of the mortgage. |
fixed monthly payments and interest rates regardless
of fluctuation in the market. |
equity building is slower because the first few
years of payments are applied toward interest not principal. |
30-year fixed mortgage rates
20-year fixed mortgage rates
15-year fixed mortgage rates
|
| Adjustable Rate Mortgage (ARM) |
mortgage with adjustable interest rates depending
the current market rates. The first year mortgage interest rate
(teaser rate) is usually a couple of points below the current
market rate. ARM rates can go up to a certain limit or cap.
|
initial Mortgage interest rates are lower, usually
1 or 2 points below current market rate |
interest rate could increase significantly during the
adjustment period increasing you monthly payment. (Note: If
rate significantly increases after adjustment, you may want
to refinance in order to lower the rate. This assumes the
rate to refinance would be lower than the rate after adjustment)
|
1-year Adjustable Mortgage Rate
3-year Adjustable Mortgage Rate
5-year Adjustable Mortgage Rate
3/1 Adjustable Mortgage Rate
5/1 Adjustable Mortgage Rate
7/1 Adjustable Mortgage Rate
10/1 Adjustable Mortgage Rate
2/28 Adjustable Mortgage Rate
3/27 Adjustable Mortgage Rate
|
| Balloon Mortgage |
refers to short-term loan where the loan payment
is amortized like a fixed-rate mortgage for a number of years
(5 or 7). At the end of the initial period, the mortgage full
balance is due in one single payment(balloon payment) |
mortgage interest rate and payment are lower
than conforming 30 year mortgage programs.
|
the entire mortgage balance comes due
at the end of the term
if you do not have the funds to pay the baloon payment, you
may have to refinance with the possibility of higher mortgage
interest rates |
5/25 balloon mortgage
7/23 balloon mortgage
|
| FHA Mortgage |
aka government mortgage; the mortgage is guaranteed
by Federal Housing Administration (FHA) |
down payment can be low as 3%
6% sellers concession is allowed (in states where applicable)
approval requirements are less stringent than conventional type
mortgage loans |
mortgage interest rates may be slightly higher
than conventional type mortgage loans
mortgage loan closing costs may be higher than conventional
type mortgage loans
|
30-year fixed mortgage rate
15-year fixed mortgage rate
|
