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?- 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
- 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
Knowledge Base
Can I refinance my home loan if the the value of the home has gone down over the last year?
i want to refinance my home loan to get a better rate. i purchased the home 1 year ago and currently have a 30 year fixed at 7. 0%. i bought the house for 475, 000 an currenty owe 423, 000. i worried that the home prices have droped so (home mortgage loan)
More than one home equity loans at a time?
i want to know if i can get more than one home equity loans at a time for a single house from different banks. because i have applied for a home equity loan from a bank, but it seems to be not enough for me to do what i want (home equity loans)
What is the maximum limit of home loan credit score rating could help avail?
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Knowledge Base: Home Loan
Bad credit Home loan, How can you get a home loan with really poor credit?
my husband, myself and our kids, are living with his parents, for the past six months. we both have very poor credit and are in desparate need of our own place. we now can afford our own place but cannot get a loan to purchase one. we have down payment (bad credit home loan)
Will move in 5 years, best to pay off home equity loan of $15k, or combine with home loan and refinance?
right now my home equity loan is at 7. 4%, and my home loan is at 5. 35% i am leaning towards paying off my home equity loan, but should i combine my two loans and refinance instead?. rule of thumb from money magazine only re - fi if you (home loan credit)
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 (home loan)
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 loan credit)
How do we get a guaranteed bad credit home loan to purchase a new home with no cosigner?
there is no such thing. you have a better chance finding bigfoot or elvis!. you find that then you are the luckiest person. home mortgage loan refers to the loan lent to someone who buys a house from a developer, makes the initial payment and lets the bank to pay (home equity loans)
Knowledge Base: 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)
Can I lock a home loan rate with more than ONE lender ?
can i lock a home loan rate with more than one lender ? so is it good to go with a broker than a lender directly ? will i get a better rate from a broker than a lender directly ?. sure, but you will need to make formal loan (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)
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)
