So which is better fixed rate or adjustable rate mortgage?

Written by Syd Johnson


This is a question that keeps coming up when customers start looking at purchasing or refinancing their home. If you look atrepparttar average 30 or 15 year mortgage, it seems thatrepparttar 150848 better mortgage depends onrepparttar 150849 type of customer. The best mortgage is one that fits in your long term budget, wonít use up too much of your monthly income, and gives you a sense of control over your home so you donít end up house rich and cash poor. Letís look atrepparttar 150850 basics.

A fixed rate mortgage gives you sense of control because you know what your interest rate will be forrepparttar 150851 next 30 years. The only concern is thatrepparttar 150852 market rate might go down at some point inrepparttar 150853 future and you will end up paying more thanrepparttar 150854 current interest rate. You can change this by refinancingrepparttar 150855 loan to lower your payments and get a lower interest rate.

An adjustable rate mortgage allows you to play withrepparttar 150856 market rate knowing that sometimes you will be more thanrepparttar 150857 market interest rate, and other times you will be paying slightly less. Overall, ifrepparttar 150858 economy stays healthy you should feel like you maderepparttar 150859 best decision and did not overpay for your home.

You donít need 10% or 20% down to get a home mortgage

Written by Syd Johnson


The rapid increase in home prices overrepparttar past couple of years have left many potential home buyers struggling to come up with their 10% or 20% down payment. If you live in a hot market like Los Angeles, Manhattan or Miami, you might be able to affordrepparttar 150847 monthly payments on a home mortgage but have a hard time coming up withrepparttar 150848 one time cash for a down payment.

If you canít come up with a 10% down payment, home mortgage lenders are becoming savvy to your plight and have created many different solutions to help you get financing for your new home.

One ofrepparttar 150849 top ways to get home mortgage financing is with a 5% down payment. This gives most customers a huge break onrepparttar 150850 amount of cash that they need to purchase a home. Inrepparttar 150851 past, 5% down home mortgages were only available as through government funded loans likerepparttar 150852 Veterans Administration Loans.

Now, many lenders including banks, credit unions and mortgage companies will work with their customers to offer low down payment deals. In addition, you can also do a zero down mortgage. In this case,repparttar 150853 entire loan amount will be financed so your monthly payments will be higher than it would have been with a down payment. Also, your home mortgage lender might charge you a slightly higher interest for taking onrepparttar 150854 risk of approving a client without a down payment.

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