I have heard about Variable rate home loans. But why do people choose that loan over a fixed rate loan?
Could there be a baloon payment with that type of home loan?- There could be a balloon, but not necessarily. That's just another factor to consider, like a "prepayment penalty". The reason why people take Variable rates is fairly simple. The rate is initially "fixed", often for two years. All other things being equal, that initial interest rate is usually lower than what they could get with a 30 year fixed rate. The "plan" is to refinance before it goes up. Where people get caught is when they are unable to refinance after that time, whether because they did not fix their credit, or the interest rates went up so much that they can not afford the going rate, or the home value went down. I suspect that most of the foreclosures going on now are people that intended to refinance before the rates varied, but did not or couldn't. Anyone taking a variable rate now with such a plan is in for an upleasant surprise when they get to the part of the plan where they refinance at a fixed rate
- Because they often start out less than fixed rate and it's a somewhat tricky way to fool people into taking a bigger loan than they can afford
- This is a great site about home loans. ukhomeloan.org
- It depends. You need to take everything into consideration when taking out a loan. To me, variable or arm or interest only products are just like other loans, they have their purpose. You may know that military people move around a lot. When they're moving every 5 - 7 years, why not get a 7 year arm that they pay a fixed interest payment on every year? Why would they want to pay prinicple on something that they really do not have an emotional or investment attachment to? Maybe your just starting a family and want the extra money? Some people are money savvy and think that by playing the arm game that they can keep more money to themselves. Arm's / variable mortgage are not for everyone, that's where a mortgage professional comes in to understand the entire situation and customize a mortgage solution to not only fit immediate needs, but long term goals as well
Knowledge Base
What would happen to your home mortgage loan in this case?
say if me and a co - buyer buy a home together both first - time home buyers, and get a conventional loan from a bank. if later, one of us wants to take our name down the le, would that be allowed? would the bank re - acess the (home mortgage loan)
Use student loans or obtain home equity line?
my employer pays for my tuition, but i am still eligible to take out student loans. i am debating if i should continue to use student loan money to "fix - up" my house, or just take out a home equity line. i know if i take out a loans, (new home loans)
Can we get a home mortgage loan with poor credit?
my soon to be husband and i are renting a home in our area and paying $1100. 00 a month in rent. this is quite a bit for the area that we live in we are wanting to buy a home and feel that we have sufficient income around $90, (home mortgage loan)
Knowledge Base: Home Loans
If Obama has made things better, why are new home loans at a 13 year low?
reuters.com / article / idustre64i3px20100519 another obama lie. because peeps are losing there jobs they have no or crap credit the borrowers issues not the presidents duh. jeez stop whining and blaming everything on obama. do something for yourself. if you hate obama so much, it means you hate his (home mortgage loan)
It is a buyer's market - I understand that. Home equity loans, how do they work?
if i purchase a home for $300, 000, but it is appraised for $350, 000, will i have automatic built - in equity that i can use to consolidate $12, 000 in school loans and credit card debt? or, will i still have to pay down some of the p&i (new home loans)
What are the key factors in obtaining a home mortgage loan?
my credit is not bad or fair. it's good, just below excellent. how good does your credit have to be and what other factors are key to successfully obtaining a home mortgage loan?. hi ronnie, your credit has to be at least a 640, so i am uming you will (home loans)
Will a new job affect your posibilites of getting a new home loan?
my boyfriend wants to buy a home for us and he just got a new job offer with better pay and benefits. he has been at his previous job for 8 years and will probably be accepting this new offer very soon. will this affect his possibilities of getting or (home mortgage loan)
Can I use my current owned home as collateral on new home mortgage loan?
my family and i live in a home legally donated to us by my father. we have ownership. can we use this home as collateral for a mortgage loan on another home in another state? if so, how does that work?. is the home worth more than the home you (new home loans)
Knowledge Base: Home Loan Rate
What is the best way to get home loan rate quotes?
who is the best to get a home loan from? i am in oklahoma. start looking around, i think country wide is at the top of the list. find a lender in your area and get qualified to buy. i would float into a rate right now. local lender so (home loan rate)
What kind of home loan interest rate could I get with a bankruptcy on my record?
i have a chapter 7 bankruptcy on my record from 2003, but i have no debt and a credit score of about 700. and i have $20, 000 for a down payment. if i got a home loan, would the bankruptcy make a huge difference in the interest rate? how (home loan rate)
Does the home loan interest rate vary between online quotes and the real ones ?
- i am planning to buy a home - i have put an offer on a house and almost a hundred percent done deal now i have to look out for a home loan. i am looking at several online interest rate quotes what lenders are giving based on my (home loan rate)
I have heard about Variable rate home loans. But why do people choose that loan over a fixed rate loan?
could there be a baloon payment with that type of home loan?. because they often start out less than fixed rate and it's a somewhat tricky way to fool people into taking a bigger loan than they can afford. there could be a balloon, but not necessarily. that's just another (home loan rate)
How will the decrease in home loan interest rate help the realty sector?
everyone is talking about the cut in the interest rates for home loans. will actually the cut gonna help in reviving the realty sector?is it a good time to buy a property rite now or should wait for some more time?. it will facilitate o secure housing loans for more (home loan rate)
Knowledge Base Categories:
- Home Loans
- New Home Loans [9]
- Home Equity Loans [7]
- Home Loan Refinance [4]
