Tag Archive: ARM

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popular types of mortgage loan

November 27th, 2014 / Tags: , , / categories: Mortgages /

Currently in the market there are three most important types of mortgage loans.

Are you in search of mortgage loan? If yes is what you have answered then it is wise for you to know the types of mortgage loans that are presently popular in the market. Most of the times, you might get confused which type of loan is suitable to you. Thus it is vital for you to all the three types of loans in brief so that you can take the right decision.

Below mentioned are the three types of loans that most of the banks and lenders lend people. Take some time out and know about them in brief so that you can be sure which one suits your requirements the most.

Type #1

Fixed interest rate mortgage loan:

This is one type of mortgage loan that is very popular and most of the people prefer taking this kind of loan due to a number of benefits. As the name says, the interest rate in the mortgage loan is finding in this type. This means that you know how money you have to keep aside for paying the interest plus the principal amount for the loan. This is the main reason as well as the benefit why people prefer this kind of loan. In this type of loan, the term of the loan usually is 30 years. Thus you know much money you need to pay monthly for 30 years for the loan.

Type #2

Convertible loans:

This is the type of loan is becoming more and more popular these days because of the flexibility that it offers. This kind of loan keeps all the loan options open for the borrowers. This is considered to be one of the most important benefits as well as reasons why this type of loan is becoming popular.

In case you find that the interest rates are too high, then you have an option in convertible loans. You can convert the loan into fixed interest rate mortgage loan. If you find that the interest rate is low, then you can convert the, loan into ARM based loan.

Type #3

Special mortgage loan:

This is a type of mortgage loans that are offered only to a group of people. For instance, the FHA type of mortgage loan is only offered to people who are buying homes for the first time or even people having bad credit.

The above mentioned are the popular types of mortgage loans in the market. Choose the one that suits your needs and budget as well.

Thompson Kane & Company is a professional mortgage loan Company providing you great options at the most feasible rates. Opt for their unbeatable Milwaukee mortgage companies Services today!

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What if the mortgage rates are notabated!!!

September 8th, 2014 / Tags: , / categories: Mortgages /

Mortgage rates are the rates levied by the bank or finance company withholding the conveyance of the property as a security. 90% market kept an eye on Federal Open Market Committee to hear about rising mortgage rates in September. But the Fed announced that they won’t be tapering the Treasuries and Mortgage Backed Securities and would wait for the economic indicators to improve on its own. Hence the rates fell off for lender in between 0.125 % to 0.250%.

The last 3 month has shown how the fixed mortgage rate fell down. The survey of large lenders shows that the 30 years fixed rate fell off from 4.66 % to 4.62 % and now it is 4.47 %, and it is still moving south. Similarly the 15 years fixed mortgage rate fell of from 3.7 % to 3.57 %, even the adjustable rate- mortgage (ARM) was not able to bear the decision; it fell off from 3.55 % to 3.41 %. Thus, the decision of Fed Reserve has dropped rates to quarter of percentage.

How it is affecting the economy?

If the U.S. pays its debts then the rates would rise quickly but it is just prolonging theories for a ceaseless political postures. The economy is the real victim here; hence it is better to connect with rentalchoice.com to know the meaningful shifts by the Feds to solve the issues of QE3.

QE3 or bond buying program is a key factor that it is affected by the rates from last 2 years. If the flow is not abated then there would be a rise in unemployment.

Impact of government shutdown

The democrats and republicans have to look into a budget agreement or else the government has to shut down. The threat of potential government shut down would have a huge impact on investor that would result is the fall or rise of rates depending on how they react.

If there is any delay in the mortgage operations, then the homebuyers and refinancers would face delays on closing or applying on mortgage. Even if the homebuyers have locked the mortgage rate for a minimum of 60 days, they can aspect a huge benefit.

Homeowners:

The homeowners could apply for refinancing their loan in this fall, only if they have signed a mortgage lock contract with the lender. In the lock contract, a home owner can lock the rate in the fall to save his income. If the rate increases in the near future and the rate are locked at relatively low point then you he expect significant saving.

The mortgage rates will go higher when the Feds are forced to raise the rates. Thus, this could happen only if the unemployment drops or there is substantial improvement in the economy.