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Have you wondered what exactly is up with
mortgage refinance home improvement loans debt consolidation
Adjustable Rate Mortgages Offer Alternatives For Home Buyers
When looking for a mortgage to meet your needs, consider these key questions: Is your income expected to increase in the coming years? How long do you plan to live in your new home? And, which mortgage will provide the lowest interest rate?
While 15 or 30 year fixed-rate mortgages are the most popular, and Adjustable Rate Mortgage (ARM) offers some interesting alternatives for home shoppers who plan to move again within four or five years. Although interest rates are the lowest theyve been in 20 years, an ARM provides even lower interest rates during its introductory period.
An Adjustable Rate Mortgage is a home loan with an interest rate that fluctuations with market interest rates. Instead of paying the same rate of interest over the life of the loan, as you would with a fixed-rate mortgage, you usually pay a lower interest rate the first four or five years. Your interest rate then changes in accordance with certain rate indexes.
However, ARMS come with maximum caps on how much the interest rate can increase in a single period (usually a year) and how high the rate can go during the entire life of the loan. Usually, the overall maximum cap is six percentage points, and the annual cap is two points
W. Troy Swezey is the author of ADJUSTABLE RATE MORTGAGES OFFER ALTERNATIVES FOR HOME BUYERS." As a Realtor at Century 21 Paul & Associates, he has helped many individuals with their real estate needs. Visit his web site to download his free e-book, REAL ESTATE SECRETS EXPOSED. http://www.TroyIsMyRealtor.com or mail to: TroyC21@usa.net
More Useful Resource and Updates on mortgage refinance home improvement loans debt consolidation
- Mortgage-Bond Yields Plunge, Suggesting Record Home-Loan Rates (Bloomberg)
Dec. 4 (Bloomberg) -- Yields on Fannie Mae, Freddie Mac and Ginnie Mae mortgage bonds tumbled to the lowest on record following reports that Treasury Secretary Henry Paulson is considering a plan to push home-loan rates down to 4.5 percent.
- Mortgage rates post largest drop in 27 years (Reuters via Yahoo! News)
Interest rates on U.S. 30-year fixed-rate mortgages plummeted by the largest amount in 27 years this week after an unprecedented intervention by the Federal Reserve, data from home funding company Freddie Mac showed on Thursday.
- Banks to be forced to pass on interest rate cuts on tracker mortgages (Daily Mail)
Mortgage lenders who use small print to avoid passing on any interest rate cuts could be forced to give their customers the full benefit of any cut,a City watchdog ruled today.
- Mortgage rates drop again (Moldova.org)
Interest rates for 30-year, fixed-rate U.S. mortgages fell dramatically during the week, the Federal Home Loan Mortgage Corp. said Thursday.Thirty-year fixed-rate mortgage rates are now almost a full percentage point lower since the last week in October, said Frank Nothaft, Freddie Mac vice president and chief economist.The 30-year, fixed-rate mortgage dropped from 5.97 percent with an average ...
- Mortgage lenders pass on rate cut (Channel 4)
Lloyds TSB and HSBC said they would be passing on the 1% interest rate cut to their variable rate customers in full.
- Home builders' shares soar as mortgage rates plunge (The Forex Market)
NEW YORK, Dec 4 (Reuters) - Shares of U.S. home builders rose on Thursday as the beleaguered sector, floundering amid a protracted downturn, extended a six-day rally spurred by the largest drop in interest rates on 30-year fixed-rate mortgages in 27 years.
- Interest rates cuts: More than half of mortgage borrowers will not benefit from the interest rate cut (Daily Telegraph)
Home owners hoping to benefit from the interest rate cut are likely to be left disappointed with many lenders unlikely to pass on the full one point cut.
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