Adjustable Rate Mortgage Thumb-Of-Rules For Instant Approval

Today we will be discussing mortgage plans, namely adjustable rate mortgages along with FHA mortgage refinancing options. Many people in America only associate an ARM with a calculated risk. The risk being that at some point the home owner’s mortgage rates will adjust to payments well beyond their means and they will have to default on the loan.

Although this can happen, there are many options available to prevent something like this from ever happening. 

From certain caps that are in place to the possible ability to refinance up to 95% of your primary home’s value there are many ways to make an adjustable rate mortgage work financially. Still, most Americans will almost always choose to pursue a fixed rate mortgage because it is more stable, but they are missing out on some of the great advantages an ARM can provide.

• Contrary to popular belief adjustable rate mortgage rates don’t suddenly spin out of control. Lenders and homeowners negotiate certain caps which prevent the percentage from exceeding a certain amount despite the housing market.
• Interest rates are typically lower than fixed rate mortgages. During the fixed rate period of an ARM you will enjoy significantly lower monthly payments during which you can save a lot of money.
• Not only can you refinance up to 95% of your homes principal value, but you can also buy your primary residences for as little as 5% down.
• FHA adjustable rate mortgages have more flexible guidelines as well as a government backed loan, and for veterans the VA ARMs are offered as alternatives to fixed rates.

Why Are People Choosing Fixed Rates?

The reality of the market today is that homeowners are refinancing every few years, or moving every 5-7 years. So why are people choosing 30-year fixed rate mortgages? They are actually paying more on their fixed rate payments for the sake of long term interest rate protection that they won’t ever utilize. On the flip side, many financially savvy people are wise to this and know how to use adjustable rate mortgages to save money. It is also possible to eventually seek FHA mortgage refinancing options before the rates change. However there are appropriate times to apply for one and they are still more of a risk if you don’t have a financial plan involved to prepare for adjustments or a possible refinance at some point before adjustments are made.

Ideal Candidates

An ARM is ideal for people who consider their home a starter kit and/or plan to move before the rates are adjusted. People also have to be disciplined with their financial plans and use their savings during the fixed rate period to accomplish their goals. Some people have jobs which require them to move on a regular basis and can enjoy the lower monthly payments because they have no use for a long term plan. The other possibility is to use the initial fixed rate period to pay off the principal quickly by paying more than the minimum.

To learn more about mortgage plans available to you in your part of the country visit www.real-estate-yogi.com or call them directly at 1-800-987-1397 for a free consultation. 

Making the Choice for Adjustable Rate Mortgages, ARM Complete Guide

If you are in the market for a home and weighing your buying options you probably have heard of the various types of mortgage programs available to you in the United States. Fixed rate mortgages are the more popular among homeowners however adjustable rate mortgages offer distinct advantages that many buyers overlook. But what are adjustable rate mortgages and why would someone choose this over a fixed rate?

• An adjustable rate mortgage has interest rates that vary. They typically rise and fall with the overall housing market’s interest rates but you can expect them to change after 3, 5, or 7 years.
• Many adjustable rate mortgages are tied to indexes such as Prime rate, Cost of Funds, or LIBOR. Although this is just a technicality it will affect how the payments change over time. A lender can tell you why they are using a specific index as a basis.
• The biggest benefit to an adjustable rate mortgage is lower monthly payments and great savings during the first few years of the loan.
• The biggest risk for you is that interest rates rise increasing your own rate and making it impossible for you to continue paying your monthly fees.

If you choose to go with an adjustable rate mortgage for your home the bank typically will reward you with a lower initial rate because you have decided to take a majority of the risk in owning the home; the risk being that interest rates could rise in the future. This is in contrast to fixed mortgage rates where the bank takes on more of the risk. With a fixed mortgage rate, if interest rates rise, the bank is stuck loaning you money at below the market rate.

Risk verse Reward

You will notice the advantages of an adjustable rate mortgage during the first few years of home ownership. Your payments will be low for several years; however after a set and agreed upon time the rates will adjust to match the market. This usually, but not always, results in the interest rates going up because the bank set them so low to begin with as a reward for taking on the risk. Therefore you may benefit from all that saving you did over the course of the beginning of the loan but now the rates have risen. Sometimes the payments increase dramatically and you have to be prepared for this. Careful planning is essential.

Managing your mortgage

Before you decide to start looking at the current adjustable mortgage rates available it is important to know how to manage one in the future. You need to pick the right type. Negotiate with your lender to have a loan with restrictions and “caps”. These are limits to how much your mortgage will adjust. A lender should understand this and not want you to have rates increase to a point where you have to default on the loan. You can get caps for interest rates applied to the loan, caps on the dollar amount you pay each month, or a guarantee on the number of years that pass before the rates change.

Visit www.real-estate-yogi.com for help on how to manage the risks associated with adjustable rate mortgages. They can advise you on many things related to real estate and are available anytime for consultation at 1-800-987-1397.

The Benefits of Adjustable Rate Mortgages

What are adjustable rate mortgages? This is something everyone needs to know before they make the decision to apply for an ARM. Some people feel more comfortable with a fixed rate mortgage, but there may be advantages to the ARM for some borrowers.

Benefits of ARMs

If you are like I am you are probably afraid of even considering one of the adjustable rate mortgages. The truth is these types of mortgages are not right for everyone, but there are definitely some benefits for those who have the current financial resources to enter into this type of arrangement. According to Real-Estate-Yogi.com, ARMs are best for those homeowners who fit into the following categories:

• Homeowners who only plan to stay in the home for a short period of time
• Young couples who are just starting in their careers and are not yet making enough money to qualify for their dream home with a standard fixed rate mortgage
• Older couples who may be interested in financing a vacation home into which they plan to move when they retire (they may wish to sell their current residence and refinance the ARM at a later date)
• Couples who are in the midst of a career change and thus may be on the bottom of the scale salary-wise

If you’re considering an ARM you may wish to take some time to browse through the Real Estate Yogi website. If you would like more information enter your contact information on the form provided on the website. One of the professionals will contact you as soon as possible.

Applying for an ARM

Have you made up your mind that an adjustable rates mortgage suits your lifestyle? Before you fill out any applications, you want to conduct some research in order to make sure you get the best possible mortgage available. The more time you spend researching, the better the chances are you will obtain the best possible rate.

Is an ARM Right for You?

Before you make a decision about an adjustable rate mortgage you need to decide whether this is the right type of mortgage for you. There are many facts to consider such as how long you plan to live in the house, how much of a mortgage you can afford and most importantly whether you have the financial resources to afford the monthly payments once the fixed rate period is over.

If you’re considering an adjustable rate mortgage, you may want to visit www.real-estate-yogi.com and browse through the excellent information. Visitors also have access to a free database of thousands of legal and financial representatives all over the United States. If you are interested in setting up a free consultation with one of the experts, call 1-800-987-1397 any time of the day or night.

How To Refinancing An Adjustable Rate Mortgage!!

My daughter and her husband have been in financial trouble since he lost his job. He’s a good guy and he’s trying to find a new job, but it isn’t easy. They’ve received notice of their bank’s intention to begin the foreclosure process on their home if they can’t get caught up on their mortgage payments, and she’s very worried. I suggested they consider an adjustable rate mortgage refinance and told her to go to Real-estate-yogi.com to get information about the process. She did, and when she called me back a few days later, she was full of praise for this user-friendly, no-cost website.

Andi (my daughter) could not say enough about how easy it was to move around Real-estate-yogi.com. She went from one topic to another within the site easily, and she’s not especially computer literate, so that’s saying something. She learned what a refinance of a loan is – a new loan pays off the original and you get better terms – and how to go from an adjustable rate mortgage to one with a fixed interest rate. She thought the refinancing procedure was going to be complicated but found out that it really wasn’t at all. All she and her husband had to do was fill out an application with their lender and provide proof of their financial hardship. They also brought in my daughter’s employment pay stubs and my son-in-law’s unemployment insurance receipts. They found the loan officer very helpful and were soon finished with the application. Now they’re waiting to hear back from the bank.

Andi has been making good use of the waiting period. Still navigating through Real-estate-yogi.com, she learned that, with mortgage rates low now, more people are refinancing their adjustable rate mortgages into loans with fixed rates. The major difference between the two is that an adjustable rate mortgage payment fluctuates as the market does, whereas one with a fixed rate stays the same for the life of the mortgage. The home buyers for whom it is most sensible to get an ARM (adjustable rate mortgage) are the ones who intend to live in the house for less than 15 years. In order to take full advantage of an ARM, a prospective home purchaser should consider the benefit of a low rate against the risk of higher rates in the future and take steps to ensure that he’ll have the money to pay the increased payment.

Real-estate-yogi.com is a full-service website whose aim is to help folks refinance an adjustable rate mortgage easily by providing guidance via the specialists who contribute their brilliance to the site. There are always knowledgeable staff members available to help, and the site is operational 24 hours a day, every day of the week. For your complimentary initial consultation, dial 1-800-987-1397.

Knowing If Adjustable Mortgage Rate Is Right For Me!

My wife and I decided to take out a second mortgage on our house for a remodeling project. We were advised to operate under a home equity line of credit for various reasons. Our credit was poor while our mortgage had been up to speed. We shopped around for a while for lenders, finding un-affordable fixed interest rates. Looking for alternatives, we found the adjustable rate mortgage option. We looked for further help from Real Estate Yogi, finding a representative who informed us found a lender with the adjustable mortgage rate option.

Comparing Mortgage Options

The fixed mortgage rates today were had high rates that we couldn’t afford at the time. My new employer brought me in at entry level. I expected that this would soon change. My initial salary was too low for the low interest rates, but most would be affordable with eventual income increases. I was steered towards the adjustable rate home mortgage option because of the affordable “teaser” or initial interest rates.

Why We Chose the Adjustable Option

The ARM would remain low for a period of time (called the initial interest rate period) based on the lender and loan choice. After that, at a time concurrent with future earnings, a new interest rate would be calculated based on a margin added to the index to determine the interest rate. The interest rate is adjusted according to the compiled index. The Real Estate Yogi Representative laid out the options based on the different components of the ARM and different interest rate terms.

Adjustable Rate Mortgage Options

The representative said that margins vary, meaning that the new interest rate after the initial interest period would be calculated differently from lender to lender. They explained to us that these are measured based on different international indexes and standards that indicate market standings. Two of these include the Constant Maturity Treasury index, or a maturity (adjusted by the rate of a year) of the average yield treasury securities, and the one year London Interbank Offered Rate. Different options have different rate cap structures that limit rate increases.

The different caps offered are annual, and life of the loan. The annual option limits how much the rate can change per year, while the lifelong limits the interest rate to one value over the period of the mortgage.  

We boiled our choices down to two hybrid interest cap rate structures, the interest cap dependent on the initial interest period. The longer the initial interest rate period, the higher the cap component. The short term initial interest period, one and three years, were one percentage point for annual, and 5 points for the lifelong cap. The 5-10 year ARM would rise two points annually and six points over the life time. We could afford the 5% initial interest rate, and assumed that my first raise would be in 5 years, so we chose the 5 year option, with a two percent annually cap. There was the chance that we would abandon the mortgage sometime after my raise, and that having the 6 percent cap wouldn’t do any good because we might opt out before three years, when that would be equaled by the annual rate.

www.real-estate-yogi.com will help you like they helped my family, determining the ideal mortgage. They are a popular consumer service specializing in real estate and finance issues, from mortgages to foreclosures. Call 1-800-987-1397 for a free consultation.

Do You Have Adjustable Rate Mortgage Loan? Can You Refinance It?

My husband and I are putting up a modular home on some land we inherited. Of course, having been an apartment dweller for most of my adult life, I had no idea what this endeavor entailed. Thank goodness for Real-estate-yogi.com! I came across this user-friendly website as I was searching for information about mortgages. It was so helpful! I learned to understand an adjustable rate home loan versus a fixed rate mortgage. I found out that we should check out a few different lenders to see what sort of interest rates they offered, and to find out if we could get a larger loan from one than from another. This proved to be invaluable direction! We got an excellent rate, terrific terms, and more money than we thought we could, so we looked at a larger house, which we then signed a sales contract for.

Real-estate-yogi.com also helped me see how easy it is to check the current adjustable rate mortgage rates. All I have to do is go online, type in what I’m looking for, and wait a few seconds. Of course, rates vary from place to place and lender to lender, but they’re usually pretty similar. However, the lowest rate you can get is the one that will save you big cash, so... After I found out what the rates were for an adjustable rate mortgage (ARM), it occurred to me that I wasn't exactly clear on how it works. I know that the rate is subject to change at certain intervals, but I didn't know if there are caps on how much it could rise, which there are, by the way. I realized the advantages of adjustable rate mortgages, too. One of them is the lower rate. Another is less money needed for a down payment. Too, the initial low rate is fixed for a certain amount of time; then it begins to change. There are other pluses for ARMs; check them out.

While I was learning all this information, I also picked up facts about FHA refinancing rates, in case my husband and I ever need to refinance our new mortgage. I’m telling you, Real-estate-yogi.com is a font of information! While the rate for FHA refinance is currently somewhere around 3. 5%, I know it will be different when or if we need to know it for ourselves. Still, it’s good to be aware of where to look for this figure, which is

www.real-estate-yogi.com, of course! You can get a free consultation by calling 1-800-987-1397, any time, day or night. The knowledgeable staff is always available to help you get answers to any home buying financial questions, and they are among the most polite people I’ve ever dealt with, so give them a call and let them help you as they did me.

Adjustable Rate Mortgages could be a Great Choice Right

What are some of the reasons people choose an adjustable rate mortgage over a mortgage with fixed rates? This was one of the many questions I asked myself when I was trying to buy a second home. It's not always clear what option would be best for the homeowner when it comes to such a large purchase. The smart buyer will want to look into the future and try and predict how their income and life is headed. This is not usually an easy prediction to make because we all know that life is inherently unpredictable. But for some an Adjustable Rate Mortgage Loan is the best option and here's why.

• You get the lowest possible mortgage rates. Right now interest rates are already very low, but you can get them even lower by choosing an ARM loan.
• ARM loans do not always adjust up! This is a common misunderstanding. Because the market is so fickle an ARM loan can actually result in a lot of savings which can be used towards the principal of your home, or to pay off other debt.
• ARM's are popular amongst the financially savvy because you can save so much money during the fixed rate period.
• ARM's are great for people who don't plan on staying in that particular mortgage for the length of the deal. Either they will move before the adjustments kick in, or they plan on refinancing down the line.

Take advantage of the market

Interest rates right now are among the lowest they have ever been in history. A typical ARM has a fixed rate period that lasts 3, 5 or 7 years. The rates are often much lower than the more popular 30 year fixed rate mortgages. In fact the market rate for adjustable rate mortgages is lower than 30 year FHA mortgages.

Pay less in the long run

It's also possible you can pay less over time even including closing costs on a refinance. You will be paying less money overall during the fixed rate period than a traditional mortgage. Say you buy a home for $200,000 with a 30 year fixed rate mortgage at 5.25%. Monthly payments would be about 1,100. With a 5 year ARM at 3.99% your monthly payments would be about 950 for the first five years. This adds up to a five year savings of just of $9,000. Including closing costs, you still will be paying $7,000 less during the fixed rate period!

ARM's can be fiscally responsible decisions

ARMs are popular among people who manage their money well. This is because you can save so much during the initial fixed rate period. Some countries only have adjustable rate mortgages available. The idea is that the home owner can pay more towards the principal of the loan early on without any penalty. The early reduced payments lower the total cost of the loan and potentially allow you to pay it off in less time.

Just remember that they are not for everyone. Speak with an expert on the matter and see if an FHA adjustable rate mortgage out there might work for you. If after reading all this you are still wondering exactly what is an adjustable rate mortgage visit www.Real-Estate-Yogi.com or call an agent directly at 1-800-987-1397 for a free consultation

Buying and Owning a Home using Fixed or Adjustable Rate Mortgages

My first time attempting to buy a home was a lesson in humility. My parents had bought a home straight out of college. Back then houses were affordable for anyone who had a steady job. I thought it would be easy. So what if I had no credit? So what if I was still waiting tables looking for my lucky break? I was responsible. I came from good home owner genes. The joke would soon be on me.

Owning a Home

Anyone who has been through the home buying process knows that buying homes is not like buying a car. They are perhaps the most valued commodity available, and you typically are competing against other families looking to start their dreams in the same home. For me it would be another fifteen years till I actually owned a home with a wife and a child. I learned many valuable lessons along the way about saving money, building credit, and how to search for the right mortgage and loans to help fund owning a home.

• What is an adjustable rate mortgage and how does an adjustable rate mortgage work?
• What is a fixed mortgage rate?
• How should a first time home buyer decide between the two? What about owning a second home?
• What are the advantages of an FHA refinanced mortgage?

What are the differences?

First let's start by learning about the two most popular ways to finance a home. Both fixed mortgage rates and adjustable rate mortgages have their own advantages and disadvantages. For the first time home buyer it is essential to know the difference. An adjustable rate mortgage often requires less of a down payment. These are good for people who don't have a lot of money to invest immediately, but are expecting their income to grow substantially within the next ten years or so. The reason is because an adjustable rate mortgage interest rate goes up after a few years. Initially your month to month payments will be small, but eventually they will increase significantly.

As for a fixed rate mortgage, most first time home buyers consider this first if they can. It is more stable; however it requires a large down payment of between 20-35% of the principal value of the home. It is difficult to find this money sometimes, so being a good saver is usually the essential ingredient to owning a home. Still, a fixed rate mortgage is exactly how it sounds. The interest rate remains the same throughout the entire process. If you honor your side of the agreement and make your payments on time then the interest rates should remain the same for the life of the contract.

FHA Approval

Sometimes homes are FHA approved. This means that a bank or mortgage lender will often accept a lower down payment on a home because it has been inspected and is in great physical shape. It is a low risk high reward venture for everyone involved. A good real estate agent can find one's for you however they are often in high demand and will go to the best candidates.

For the best help available in finding a home or for any and all real estate questions visit www.real-estate-yogi.com. Speak with an agent directly by calling 1-800-987-1397.

How To Get Current Adjustable Rate Mortgage Rates

If you've ever tried to buy a home you know that it is a detail oriented, time consuming venture. Besides the upfront costs associated, more than likely you are also trying to get some help to pay for it. In most cases this comes in the form of a mortgage.

Some mortgages are great, and suit the buyer’s financial situation perfectly. These are considered good risks with both the lender and the homeowner fully expecting the principal to be paid off entirely over time. All mortgages are not created equal however, and families find out the hard way that they signed a deal that turns out to be nearly impossible to pay over time. Here are some things to keep in mind when looking around for mortgages to help pay for a home.

• Look at your financial situation in great detail. Is now the time to buy a home?
• What type of Mortgage is best suited for this deal? Adjustable? Fixed?
• Are you in the military? Being a veteran offers some benefits.
• What is your credit score situation?

You are eager to own a home, especially if you are a first time buyer. This doesn't mean it is necessarily the right time. Look at the housing market in your area of the country, or wherever you are looking for a home. Scope out the neighborhood and adjacent properties. You will want to be detail oriented in your search. The costs associated with a home rely heavily on set and setting, and if the property value has steadily been declining over time you will want to know why.

Is now the right time?

Look at your own situation in great detail. Can you even afford a home right now? Are you buying something to flip in a few years, or do you want something you will be living in for a long period of time? How is your current employment and health? If you foresee any possible trouble on the horizon in either of these areas you may want to listen to second thoughts about making such a large investment.

Fixed Rates v.s. Adjustable

If you decide to go ahead with purchasing a home, what type of mortgage would best suit your long term intentions? Typically a mortgage will take a long time to pay off, so you will need to have some foresight. Fixed rate home loans are usually recommended for people who intend to use the home as their primary residence for a long period of time. They typically cost more initially, however the long term advantages are numerous. Adjustable Rate Mortgage conversely are better for people who don't necessarily intend to have the home for very long. These are good if the person believes their income will increase over the coming years and can afford the gradual raising of mortgage interest rates over time. The benefit is that the initial costs are usually lower as well as the initial interest rates. Someone who has no intention of eventually paying off the entire loan may want to explore adjustable mortgage rates.

If you are trying to refinance home mortgage with bad credit you should visit Real-Estate-Yogi.Com and see what they might have to say. Call to speak with a representative 24 hours a day at 1-800-987-1397.