Buying a new house is one of the most important things a family can do and is one of the most important investments of one’s life. A new home is a new start and creates a new image for one’s family. Unless one is extremely rich buying a new home is going to be too expensive. With all that money down, interest rates and monthly payments the bills can pile up. A mortgage is needed and one can find all the mortgage information they need here. Whether it is a fixed rate mortgage or adjustable rate mortgage we have all the information you need on mortgage right here. Need a fast quote? Fill out the information to the left and click on Get My Quote!
What Is a Mortgage?
A home mortgage loan is different from a normal loan in which the debtor (or mortgagor) is using his property as the security or collateral for the repayment of his debt. The house is purchased using money from the creditor (mortgagee) and they claim ownership of the house if the debtor fails to pay his debts to the creditor. Mortgage repayments are made monthly and contain a capital element and an interest element. This is called amortization. In the early years of the loan repayments are largely interest and a small part capital. Towards the end of the life of the loan the payments start becoming mostly capital and a small part interest. The size of the loan can range from short term (10 years) to long term (50 years).
The two types of amortized loans are the fixed rate mortgage (FRM) and adjustable rate mortgage (ARM). With the FRM, the interest rate of the mortgage is fixed throughout the life of the loan. This leads to a more consistent loan; you will always know what you need to pay. The ARM has a fixed interest rate for a short period of time and after that it will adjust monthly or annually based on a market index (usually the Prime Rate, Treasury Index or London Interbank Offered Rate). Although this is more of a gamble it can be beneficial because usually the interest rates fro ARM starts of lower then a FRM.
We Specialize In . . .
New Home Mortgage - Buying a new home? Your first mortgage? Everyone has to start their journey somewhere. Information on new home mortgages, why to get it, how to go about it and what to do.
Mortgage Refinance - Do you dislike your current mortgage? Do you feel you need to lower your monthly payments or reduce your interest rates? Information on how and why mortgage should be refinanced.
Debt Consolidation - Are you in debt? Can’t find the money to pay off your current mortgage? Get a loan to help pay off your mortgage, consolidate your current debt and stop worrying.
Information on mortgage debt consolidation.