General Information:
These days there are not as many mortgage types as their used to be, but there are still a lot to choose from. The safest and most basic mortgage a person can choose is the fixed rate mortgage. These mortgages give you a long-term fixed rate for the life of the loan and they include principal reduction with every payment.
Other types of loans are available but involve a more risk. The longer the term the lower the payment, but the interest will be higher. To build equity fast and pay off debt quicker, use a shorter term loan.
We answer our guests questions on our blog site. Our answers have give you some general infomation about the loan type and then an explanation of who would benefit from that loan. On our blog we also post specific questions from guest. To ask us a question just click on Ask? To read our blog, go to http://mortgageanswerguy.wordpress.com/
We look forward to helping you with the right mortgage for your situation!
15 & 30-Year Fixed:
The most widely used mortgages are the 15-Year Fixed Rate and the 30-Year Fixed Rate Mortgages. These standard lending instruments are used to provide stability and safety in homeownership. The reason these loans are so popular is because they offer payments that include principal reduction with every payment. In the early years the principal reduction is very small and most of the payment is interest related. However, in later years the principal reduction is accelerated.
Who should apply for this type of loan?
Most borrowers are good candidates for this type of loan. The security offered by the guarantee of a steady payment over a number of years is a great bonus and offers peace-of-mind. These loans are best used when borrowing for a primary residence or an investment property that will be held for a long period of time.
Using this type of loan to purchase real estate is a very conservative approach and may not allow for the greatest ability to take advantage of the lowest interest rates.
“A home is the largest single investment that most people will make while using someone else’s money. It is usually the greatest single opportunity an individual or family has to secure a large portion of their retirement and to secure their families future financial security. Shouldn’t it be the smartest?!”
