 Should I consider and interest only loan? |
I am first time home buyer.
I am interested in the interest only loan.
After the three years I can handle the increased payment.
Money is tight right now, though.
In the future ... |
|
 Would it be smart to look into a house? |
| We are currently living about an hour outside of Cleveland Ohio. In 2003 we purchased our condo for $80,000 with a three year fixed and then it went to an adjustable rate. So, last year, we ... |
|
 Why would a Savings Institution prefer to lend borrower at fixed-rate instead of adjustable-rate? |
Savings Institution bears less interest rate risk if they lend money at fixed-rate, but some institutions prefers adjustable-rate, why?
Additional Details
What if the market has upward-... |
|
 My sister and her husband want to break their lease and move out of their apartment? |
| she asked me could they do that i told her its best to wait until your lease is up than to break it would they be libable to pay more money how does this work so i can explain this to her need some ... |
|
 If I get evicted or break my lease in my state, ? |
Will it show up if i move to another state to rent?
Additional Details
It may not go on my credit report. I have an eviction on my record, but it only shows up through the city records. I... |
|
 I need HELP with my mortgage payment.....? |
| I bought my house on 4/06 it has a year already, in Florida the real estate business went down so what I paid for my house $235k is not the value of my house right now. My husband lost his job and ... |
|
 What do you think about the Realtors and Mortgage brokers? |
| who are trying to sneak their advertising in here?? Isn't that breaking the rules, guys and gals????... |
|
 It doesnt say about pets!? |
second question if a rental advert does not say anything about no pets, then is it possible to have a pet in a rented house?
Additional Details
my pets a 1 year old springer spaniel, ... |
|
 I lived in a apartment for over 10 years i moved out during the 11 year with out notice can i be held for brea? |
| i lived there for over 10 years i moved out with out notice and i was told i still have to live up top lease signed over 1o years ... |
|
| Apartment question need help asap? |
| I applied for an apartment with my two friends and brother and we got approved. One problem, we have to sign the lease by Tuesday and the current tenants are not moving out before then. Is it normal ... |
|
 Council tenants? |
how easy is it, to exchange council homes? i live in north east of scotland, but i want to move to another town, so that i am beside my family.
is it just a case of contacting the council?
... |
|
 How do I ask....? |
| My fiance and I are planning on moving within the next couple of months. However, hes got a job where he works undocumented (off the books). How do I ask a potential landlord if they will accept a ... |
|
| Rental equipment problems! what would you do? |
| i rented a man-lift from a company i told the guy what i needed it for he recommended this certain lift. they assured me that it worked!! got to the job site and it would not work, and on top of ... |
|
 Refinancing home, Who is best mortgage company? |
| Some people say to go with Countrywide,has anyone used them. I live in Ohio.... |
|
 Mortgage Company.....? |
Im looking for a good mortgage company to refinance my home....owe 95k and looking to get a loan for 100k with a low payment, better interest (now at 6.125%)....
what company you all preferr?
... |
|
 Do apartments have to be able to get wheelchair into front doors? |
| when my daughter rented the apartment the landlord knew she was blind with other disabilities, since then she has fallen and broke her kneecap and is now in a wheelchair. The doorway has the standard ... |
|
 I just bought a house...? |
| Well last week I bought new home for my family, we all really loved the house. I spent today getting to know the new neighbors, and it came to my attention that the previous owners of the house I ... |
|
|  |
marlasobbing | Is it better to get a fixed rate mortgage or adjustable rate? |
I've heard you can get a low rate initially on an adjustable rate but then it jumps up. But I also heard there is a cap on how far it can go and it works out better. How do you choose? |
 |
 
TL1
 |
You need to be very careful with an adjustable rate mortgage. Not all of them have a set cap on how high the rate can go. Unless you can afford the higher rate now, you are better off with the fixed rate mortgage. For the majority of home-buyers today the fixed rate mortgage is best. Find a good loan officer in your area and ask what loan programs are available. There are lots of places you can go for advice. Here are a few good ones. |
|
Valuation Expert
|
A fixed rate mortgage would be the most secure mortgage loan as you a guaranteed the locked rate for the life of the loan. An ARM has several factors tied to its future interest rate.
First you need to know what index it is tied to. This will be the rate your loan will change to at the end of the fixed rate period. So, if our economy is still hurting in 3 years, say you have a 3/1 ARM, you could be looking at a significant jump in interest rates or you could see a significant drop. This is where your risk resides. No one can tell you what that rate will be, it would be merely speculation.
Second, you need to know what margin you are stuck with. This is usually 2.5-3.00%. This is the percentage that the mortgage company will charge in addition to the index rate that the loan is tied to. So, in 3 years we're doing great and the treasury index, most commonly used index for ARMs, is at 4% you will be paying 6.5-7% interest at that time. If its bad and the index rate is 10% you'll be paying 12.5-13.00%!!
In addition to the state percentages, each mortgage company has different fee schedules and programs that may increase your costs. Insurance expenses are often counted in your loan amount, so this additional cost also increases the amount you are paying interest on.
You also need to be aware of the life cap rate which is the highest overall % attainable over the life of the loan and the periodic cap rate which is the highest % attainable in a specific period, usually annual. |
|
djwacotx
|
ADJ rate is one of the main problems with the world now You think the rate is cheaper but in the long run it is more likely going to go up and the sky is the limit for the company to charge you it is better to realize what you can afford today and the same payment in 15 years 20 years or 30years. Just remember if it goes up above what you can afford you will lose it or you can hope the government will bell you out, good luck and make a smart decision go with your heart and not your dreams. Remember that the cap can change daily and more that ever will with the world in the near future with all the money bailing out everyone. |
|
dude I
|
Without a doubt, a fixed rate mortgage We would not be in this crisis if adjustable rate mortgages were outlawed. When the rates jumped and the payments jumped, many Americans could not afford their house payment. |
|
guy
 |
you could probably work with a mortgage company to find out the interest rate of each that you might be qualified for. One I had was lower when it began and changed after a period of time to whatever way the market went. Now I have a fixed mortgage. I like the fixed one better because I don't have to wonder what it will change to or what company to try next. The best thing for you is probably what one is cheapest, then if it is the adjustable rate you can refinance if you maintain good credit. |
|
A Texas Tycoon
 |
Adjustable rate mortgages are one of the main reasons there was a housing crisis. Enough said. |
|
don1862
|
Always get a fixed rate. Adjustable rates are what caused all of the problems we are currently in. The rate and payment go up and the borrower is unable to pay. |
|
Ed Atun
|
The cap is usually 5-7% over the initial rate. If you can handle that, get the adjustable.. |
|
del c
|
It is better a fixed rate mortgage, no doubts!!! |
|
| |
|
| | |
| Questions List |
Answers | Last Post
| | | |
9 | 9 minutes(s) ago
| | | |
9 | 37 minutes(s) ago
| | | |
9 | 1 hour(s) ago
| | | |
9 | 4 hour(s) ago
| | | |
8 | 9 hour(s) ago
| | | |
9 | 10 hour(s) ago
| | | |
9 | 1 day(s) ago
| | | |
9 | 5 day(s) ago
| | | |
9 | 6 day(s) ago
| | | |
9 | 1 week(s) ago
| |
|
Homepage 
Financial
Forum 
Renting & Real Estate 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
