Best Fixed Rate Mortgages [mortgageapproved.blogspot.com]
www.notapennydown.com fixed rate mortgage or variable, "Vancouver mortgage broker" Welcome back mark fidgett here for notapennydown.com Receiving lots of questions lately, Should I take a fixed rate mortgage Or a should I take a variable rate mortgage? Great question and As you probably know the mortgage market has been changing a LOT lately. In fact, We're seeing historically low Fixed rate mortgages And at the same time We're seeing deep discounted variable rates, virtually disappearing. Not too long ago You could get A great variable rate mortgage At Prime minus .90, Or even a full point off. Well for now, those days are gone. The best variable rate mortgage right now Is Prime minus .15. So your best variable STARTS At 2.85 and I say starts because as you probably know, Variable rates mortgages fluctuate with the banks prime rate, Which is currently set at 3% The question then becomes, should you take a fixed 5 yea r at say 2.99 or a variable STARTING at only 2.85? I would say, take the fixed. Some people may argue that a variable rate mortgage only has a 3 month interest penalty, where as a fixed rate mortgage has either a 3 month interest penalty or the interest rate differential, whichever is the greater of the two. What you have to remember is interest rate differential only becomes a factor in a declining interest rate environment. Bottom line, if you're selecting a fixed rate today at the bottom of the interest rate curve which is where we are, you typically don't ...
mortgageapproved.blogspot.com Fixed rate mortgage or variable rate mortgage Vancouver mortgage broker on Fixed vs variable
You are interested in buying a home but only want a fixed rate program and not an adjustable rate one. That is a wise decision. So what is the best fixed rate mortgage?
That's a good question don't you agree? If you are planning on buying a home anytime soon, you need to know the answer to that question.
As you may know, lenders offer a large variety of loan options. So how does a first time home buyer know which loan is the best for him/her?
In this article we will discuss what has been the favorite fixed rate home loan for many people for decades. You will discover the advantage of a fixed rate mortgage and how it can benefit you. By your coming to understand this, you can then make an informed decision when it comes time for you to apply for a loan.
Since I'm sure you're a busy person, I'll just get down to the brass tax here.
I'm sure you heard of the FHA home loan right? Well in a nutshell, that is the best fixed rate mortgage for the first time home buyer. Let me tell you why that is so. Then you will see where I'm coming from.
Just before the recent home loan meltdown, first time home buyers had way too many options for a loan. There were adjustable rate loans, fixed rates, 1st and 2nd loan combos etc. It was actually getting to be a very crazy time. The big lenders really did not care about you as the borrower. All they wanted were completed loan packages they could bundle up and sell to investors.
It had become a standing joke that if you could fog a mirror, you could get a home loan. No document loans if your credit score was above 600. Sometimes even lower scores were allowed to get financing without verifying income.
These loans came to be called liars loans. Home buyers with the help of the money hungry loan officers were just flat out lying on the loan applications stating enough income so they could qualify for the loan. All of this based solely on a decent credit score of the buyer.
99% of the time these loans were adjustable rate mortgages that were based on the 3 month or 6 month Libor Index. So every 6 months the mortgage would adjust after the initial 2 or 3 year period. By the time they were getting ready to adjust, these loans were sold off and the original lender was on to the next sweetheart deal.
The person who was left in the cold was the investor, then the home owner. When these loans started to adjust, people could not afford their payment increasing so they lost their homes.
So if you really want to sleep good at night, look for the old standby loan product that has stood the test of time. Since 1934 the FHA Home Loan has been the best fixed rate loan out there. It still is even though they have tightened their requirements to qualify.
This loan product has a fixed interest rate so you know what your principal and interest payment will be 30 years from now. Yes you have to escrow taxes and insurance which will vary some over the years, but you will not see the huge adjustments that many had that got caught in this crisis.
So then my dear reader, ask for the FHA 203B loan when applying for your home loan. You will find this is fairly easy to qualify for and has a low down payment. It was designed by HUD for the first time home buyer. If you cannot find a loan officer that understand them, keep shopping until you do. That way you can be sure you have the best fixed rate mortgage available. More Best Fixed Rate Mortgages Issues
