Mortgages are not a ?one-size-fits-all? proposition. Actually, this kind of loan is unique to each borrower?s financial situation. Because of this, lenders have created quite a few loan programs to accommodate the needs of everyone.
If you want a long-term option, a fixed-rate mortgage loan Maryville is typically your best choice. These loans offer set monthly payments that never fluctuate over the lifecycle of the loan. The common terms for a Fixed-rate mortgage are 15 and/or 30 years. Many institutions will go as low as 10 years on the term.
For a first time homeowner or subprime borrower, adjustable-rate-mortgages (ARMS) may be the best way to break into the ?home-owner? market.
Why are (ARMS) a good choice? It?s simple. In the beginning, this specific loan provides lower interest rates, which makes the monthly payments affordable and easier for borrowers with low income and bad credit to qualify for the loan. You should keep in mind that this loan carries its own risks so make sure this is the best loan option for you.
Basically, the interest rate could potentially increase and if you don?t plan carefully, you could put yourself at risk for a default should you not be prepared to make higher payments each month.
There are other options available to you. For several years, ?balloon loans? offer lower payments but once this time has lapsed, the entire balance is due. This option makes it easy for select borrowers to qualify for the loan and then refinance several years later to evade the ?balloon? payment.
This makes it easier for some borrowers to qualify for a?mortgage and will allow them to refinance after several years in order to evade the ?balloon? payment.
There are other options that allow bi-weekly mortgages which reduce the loan by requiring half of the monthly payments bi-weekly. (Basically with 52 weeks/year, the borrower makes 26 monthly payments annually).
With a fixed-rate fully amortized loan offers two distinct features:
1. First- this feature locks the interest rate in place, for the lifecycle of the loan.
2. Second- this feature allows the payments to remain steady for the lifecycle of the loan but is designed to be repaid at the end of the loan.
Fixed-rate mortgages are the best option for anyone looking for a long-term housing option with stable monthly payments.
Before selecting a loan or mortgage refinancing, consider your options first. You should speak with a qualified lender so they can discuss all lending options available to you.
Your community bank in Maryville TN is a great place to start when searching for a mortgage loan. Community banks are often relationship-driven and will help you secure the loan program best suited for your needs.
