fixed rate loan
A Little Info On A Refinance Home Loan…
September 8, 2009 by Mortgage Align · Leave a Comment
A refinance home loan is generally done to lessen the payment and / or free the equity on your house. Arguments in favor of refinancing are:
1. Lessen your installment
With a refinance home loan, you are able to pay less monthly installment. Even extending the term of your loan will lower the installment payment.
2. Get a fast access to equity
Getting cash out refinance home loan allows an instant access to the equity built in your home. With the cash you can get a remodeling done, travel worldwide, consolidate debt.
3. ARM to Fixed rate of interest
ARM (adjustable rate mortgage) is good for those who plan to stay in the mortgaged home for a short span because the rate of interest changes every year according to market index fluctuations. While in a fixed rate of interest the rate is constant for the whole term of the loan.
3. Balloon Payments
Balloon payments have a lump sum amount that needs to be paid after small monthly installments. You may not be able to pay the lump sum, so refinance to a fixed rate loan is generally the best option.
fixed rate loan
Reasons To Refinance Your Home Loan
September 3, 2009 by Mortgage Align · Leave a Comment
Taking quick decisions to refinance your home loan may be based on the fact that there is a need to do some redecoration or renovations, education or just to save money on the interest rates.
Major reasons people choose refinance home loans:
A Refinance Home Loan To Pay Interest On Lower Rates:
Getting a lower rate of interest on the refinance home loan can generally bring your monthly payments lower. You can put your savings away or add equity to your home with any number of home improvements.
A Refinance Home Loan To A Shorter Term:
Choosing the right refinance home loan with a shorter term like a 20, 15 or 10-year home loan instead of a 30-40 yr. will reduce the amount of interest to be paid on the whole term of the home loan.
A Refinance Home Loan To A Different Loan:
An adjustable loan with no limits can be changed to a fixed-rate loan, which provides a guarantee and fixes how much monthly installment is to be paid through out the whole term of the loan.
If you plan to stay in your home for a minimum 5 to 7 years, it makes more sense to shift to an adjustable-rate or balloon mortgage or two-step mortgage. To finalize the mortgage, calculations of the total costs, the ‘break in’ period, and all hidden costs must be taken into account.
fixed rate loan
10306 Shiloh, Dallas, TX 75228-2756
September 2, 2009 by Mortgage Align · Leave a Comment
Updated 4 bedroom 3 bath home large kitchen and mother in law suite with own wet area; owner will carry the not with 10 percent down on a 30 year fixed rate loan; no call or balloon 9% ; then they get the $8000 tax credit back if they qualify!!!!!
fixed rate loan
Home Equity Loans
August 24, 2009 by tiptons · Leave a Comment
There can be many good reasons for getting a home equity loan. One reason is that it is a great way of putting money back into perhaps your most secured investment, your home. A home equity loan is a great way of getting monies to perform major repairs or remodeling jobs to your home. If done wisely, this does not only improve the pleasure of your home, but its value as well. Major repairs or remodeling projects, such as a new roof or a new kitchen can increase the value of your home way above the cost of your loan. This can greatly increase the resale value of your home providing that other factors don’t keep or drag down the value of your home, such as the surrounding area or neighborhood.
Equity is what your home is worth over your first mortgage. You use the equity of your home as collateral, as a guarantee that you will pay back the lender the debt you owe or the lender can take your collateral, sell it, and get their money back.
There are two types of home equity loans. These loans are secondary loans, meaning that they are not the first principle loan/mortgage taken on your home. Most first mortgages are repaid over a 30 years. Home equity fixed loans and lines of credit are often referred to as second mortgages and are paid back at shorter lengths of time then the first mortgage often no more than a 15 year period.
The first type of home equity loan is a fixed rate loan that is given to the debtor as a onetime lump sum that is paid back over a predetermined length of time, usually 15 years, with a set payment predetermined by the lender.
The second type of home equity loan is offered as a revolving line of credit. Home equity lines of credit work much like a credit card that allows you to borrow a certain amount of money during the draw period, usually 5 to 10 years with a revolving balance. During that time you can borrow the money as you need it and as you pay down the principle you can borrow again on that line of credit. Home equity lines of credit or HELOC have revolving balance with variable interest rates that fluctuates over the life of the loan. With a home equity line of credit it is possible to remain in debt during the draw period by paying only the interest and not paying down the principal during the draw period. Repayment periods for HELOC’s are generally 10 to 15 years.
Note: With a second and/or third mortgage, home equity loans or lines of credit, you must pay of the balances when you sell your home.
Home improvement is perhaps one of the best reasons for a home equity loan. Why because it can be a high yield investment that is over and beyond the cost of your loan.
Often people take home equity loans for poor reasons that attack the security of one of their most secured investment, their home, to pay off unsecured debts – such as credit cards or to buy disposable items – such as vehicles, expensive electronics, dream vacations, etc… and recreating such problems rather than fixing them. Although it is often an attractive idea, it is very unwise to put your home at risk for things that lose value long before your home does.
Robert to the rescue.
fixed rate loan
Common Home Loan Types
March 20, 2009 by Mortgage Align · Leave a Comment
There are various types of home loan for the property owners. Some common loans are:
- The interest rate of these loans depend upon the financial index it is dependent upon and so after a fixed rate of interest for few years it starts to vary for the rest of the term.
- Fixed Rate Mortgage:
- These loans have a fixed interest rate for a particular period of time. So your budget can be calculated as the monthly installments remain constant.
- Balloon Home Loan:
- This type of loan is repayable in the full amount when the term gets over. Generally a loan with the term of 5 to 10 years with a low rate of interest as found in ARMs loans.
- Home Equity Loan:
- These fixed rate loans are taken on the equity that your property is valued at. They provide you with liquid cash so as to invest, renovate, education purposes. They have a fixed monthly payment and are basically safe.
- Line of Credit:
- A line of credit loan allows you to take cash on the mortgage. You can cash on the equity of the house. The monthly installments are of low interest. The advantage is that you can pay it back when you want.
