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.