Get an Option ARM Mortgage [mortgage-assumption.blogspot.com]
What is an Adjustable Rate Mortgage or ARM? What is the difference between a fully amortized loan and an interest only ARM? Watch this Expert Real Estate Tips video about adjustable rate mortgage loans (ARMs) and how they adjust after a fixed period of time.
mortgage-assumption.blogspot.com What is an Adjustable Rate Mortgage (ARM)?
WASHINGTON (MarketWatch) -- The 30-year fixed-rate mortgage average fell ... 5-year Treasury-indexed hybrid adjustable-rate mortgage fell to a record low of ... 30-year mortgage rate hits record low of 3.66%
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If you have a house and want to lower your mortgage payment, here are some of the options you can consider. Â 1. Refinance at a lower fixed rate If you have made your mortgage payments on time, you wont be able to refinance your loan at lower interest rates provided a better credit history than when you first financed your loan. If you have bad credit, this is probably not an option for you because your interest rate will likely be higher. Â If you choose this option to seek a lower interest rate loan that you at least 2%. This loan is usually worth absorbing the costs of refinancing. But remember, this is only in the case of a simple rate / term refinance. Â 2. Mortgage refinance for a longer Term Another way to lower your monthly mortgage payments to refinance for a longer term mortgage. This can be counterproductive, because you end up paying more and more on your mortgage. But if you really need a lower payment, this is an option to pursue. Â If you choose this route, try to extend that as little as possible to ensure the balance and the length of time you pay your loan back to a minimum. Â 3. To refinance an ARM mortgage An arm or an adjustable rate mortgage is another way you can lower your monthly mortgage payment. You can use a low interest rate for 1,3,5 or 7 years before your mortgage adjusts to a higher rate. If you choose this type of loan, make sure you keep a good payment history, so you are in a position torefinance your loan before your rate goes up. Â 4. Refinance Interest for a Loan An interest only loan is another way you can refinance with a lower benefit because you only pay interest on the loan and no principle. This means that at the end of your term, you will owe the entire balance of the loan. The loan balance is not down because the principle is never paid down. Â This will help you a lower payment, but is in fact a dangerous loan if you do not know how to take advantage of its benefits. To take full advantage of this loan to take, you have the money you save and to maximize the tax advantages of paying the interest to invest. This is only if you plan to keep the loan for its duration. Â If you only need a mortgage payment for a few years to get, you can refinance to another type of loan where you build equity at a later date. Â 5. Get a deferred mortgage interest / negative amortization This is a loan where the mortgage payment does not cover the amount of interest due on a loan. As a result, the balance actually rises. This is a very dangerous loan for those who do not know how to use it properly. Â This loan is also used by those who want the tax advantages and to maximize the investment potential of their dollars to increase. Some people simply invest the money they save and end up with more money after their lifetime than those who only pay regular mortgage 30 years. Â 6. Get an option ARM mortgage The option ARM isa mortgage that a combination of some of the types of loans discussed above. There are variations, but the fundamental option ARM allows you to pay one of four monthly mortgage payments per month. The four types of loans are often a 30 years fixed rate, a 15 years fixed rate, interest only payments and negative amortization payment of some kind. Â This can save you a lot of financial flexibility if you understand how to use this loan. Once again, the deferred interest payment is an option, but you do not want to use it unless it is part of an investment strategy where you move forward. The other situation you might want to get this loan if you just do not pay for the other loan options. Â If you find yourself paying too much on the deferred payment as a result of a shortage of money, you want another way to find your payments. Continuing with the negative amortization payment make will cause you owe more than your house is worth. Â Here are some ways to lower your monthly mortgage payments. As you can see each has its distinct advantages and disadvantages. To decide which loan is for you, evaluate your spending habits. Suggest Get an Option ARM Mortgage Topics
