Home
Contact
Glossary

Featured Articles

• Mortgages
• Mortgage Calculator
• Home Equity
• Mortgage Rates
• Refinancing
• Loans
• Student Loan
• Auto Loan
• Consolidation Loan

If you decide to finance your new home purchase with an adjustable rate loan, please make sure that you plan for future increases. If it is not very easy to afford the first year's monthy payments, do not buy the house. Rates WILL rise. In fact, if you purchase a three hundred thousand dollar home at a five percent interest rate, and then interest rise as expected, your payments will likely go from $1500 dollars per month to $2500 dollars per month. This can happen within 2 years!

About 1/3 of the loans offered today are "subprime." A "prime" loan is given to people with excellent credit. These are the rates you normally see advertised on t.v. and in newspapers. A "subprime" mortgage is a loan offered to people with bad credit; it usually carries a higher interest rate. This higher rate is meant to compensate the bank for the extra risk they are taking on. The good news: People with less than stellar credit can still get a home loan. Rates are higher, but it may still be a good deal as opposed to renting. Everybody and their brother are becoming mortgage brokers these days. The competition has really helped in getting affordable loans into everybody's hands.

Today's fixed rates are at historic lows. If you get a 30 year mortgage for 6%, it is almost like living for free. You see, the U.S. government allows most people to deduct the interest on their taxes. If you are in a higher tax bracket, that 6% rate is really only about 4%. Moreover, home values in the United States have risen, on average, about 4% per year since WWII. This means your loan does not cost you anything! No wonder real estate has created so many millionaires!

Arm Mortgage Rates companies, reviews, and further research: