Fixed Rate Mortgages and Why Home Owners Choose Fixed Rate Mortgages

Fixed rate mortgages are the preferred choice in America today for many families and for good reason. They desire the ability to feel secure in their homes for a long time while they raise their children and work their steady jobs. This has been the foundation of home ownership for several decades now and is a symbol of the stability of the housing market as a whole.

This stability has always been the most appealing quality of fixed rate mortgages even during our most recent housing crisis. Contrary to adjustable rate mortgages, the rates will never change for the life of the loan unless you refinance to something else. This means that your monthly payments now will be the same twenty years from now despite what the housing market interest rates are. Here are some other popular qualities in a fixed rate mortgage.

• Most fixed rate mortgages are negotiated to be anywhere from 10-50 years in length. This can change if you refinance over the life of the loan, move, or pay off the principal ahead of schedule. A 30 year mortgage is most common.
• These are very practical mortgages because the borrower is unaffected by the increase of rates around them. However if the interest rates decease it will not affect the borrower either.
• If the interest rates do drop below what they are paying they may be able to refinance on their mortgage to get an even better rate.

How to take advantage of a fixed rate mortgage

Experts in the industry have many strategies for paying off mortgages quickly and helping homeowners save a lot of money in the long run. One such strategy is to make half payments twice a month instead of once a month. This way you could potentially pay off a 30 year mortgage in 22 years saving a ton of interest which would go directly into your pocket! Another sound strategy for working with the fixed rates on your mortgage is to make at least one extra mortgage payment each year. So this would mean 13 mortgage payments each year. This strategy allows a homeowner on average to pay off their home in just 26 years.

FHA programs

The government favors fixed rates for mortgage rates, and many home owners enjoy FHA loans. Veterans also have many home owning advantages in the form of loans from the government. Generally it is a stress free loan. The option to pay less on a 10-15 year loan is appealing and achievable for most home owners and doesn’t involve the complexities and conditions associated with the risk of adjustable rate mortgages.

Weigh your options and make the smart choice

As with any loan there are certain risks involved, but the risks associated with fixed rates are generally more manageable and predictable than adjustable rate mortgages. The key is to know how to plan around the future. Do you plan on living in that particular home for a long time with your current job and family? A fixed rate is a solid investment for raising families. Visit www.real-estate-yogi.com today to learn more about your mortgage options and what might be best suited for your situation. Call them directly at 1-800-987-1397 for a free consultation. 

Cheap Fixed Rate Mortgages, Guide For Qualifying Fixed Rate Mortgages

Finding cheap fixed rate mortgages can be frustrating for those who do not know exactly what they need to do. The key to finding the best of any deal is in the research—this is something we cannot stress enough. If you fail to conduct sufficient research, we cannot guarantee you will find the best possible mortgage rate and repayment term.

Qualifying for a Low Interest Rate Mortgage

Are you looking for a cheap fixed rate mortgage? You probably want to know how to qualify for the lowest rate because there is no “one size fits all” when it comes to the interest rate on mortgages. In fact, two homeowners can have identical credit scores and pay different interest rates because there are other variations that come into the pictures. Real-Estate-Yogi.com explains there are many factors that determine an individual interest rate including the following:

• Credit score
• Financial stability
• Employment stability
• Down payment
• Price of the house

At Real-Estate-Yogi we can help you choose the mortgage that offers the best all around benefits. If you would like to speak to one of our experts fill out the form that appears on the website, and someone will be in touch with you as soon as possible.

Finding the Cheapest Rates

Finding the cheapest fixed rate mortgages can sometimes be difficult, especially if you are one of the unfortunate ones who has a lower than average credit score. I remember when I bought my house all the frustration it created. Afterward I wondered why my neighbor had a lower interest rate; it turned out even though he had the same credit score as I did it was a different lender. I had no idea at that time that the rates were not standardized. I just figured if you had the same credit score, you would pay the same interest rate. There isn't a big difference, but it’s enough to make a difference of a few dollars in the payments. This should not stop anyone from buying a home because if you don’t like what one mortgage company offers, you have the option to apply somewhere else. Of course, sometimes there aren't a lot of choices; I have an FHA loan, so I could only apply with those lenders who handled FHA loans. My sister had the same problem because they went through the VA.

Applying for the Cheapest Mortgage Rates

Finding the cheapest fixed rate mortgage can be problematic for those who don’t have the perfect credit score. At Real Estate Yogi we try to help everyone get into the home of their dreams at the cheapest possible rate. Sometimes the rate we find isn't always what the homeowner would like to see, but it’s the best rate available for that particular credit score. This surprised me when I received the commitment on my home which is why I had to question it. It’s amazing how many possibilities there are; lenders have a range of interest rates with the lowest rate reserved for only the best customers. Keep your credit score on the high side and you will have more choices.

Everyone wants to find the cheapest mortgage rates, but unfortunately those who don’t have the best credit may not see the rates they would like to see. www.real-estate-yogi.com has a great deal of information that is quite helpful for those looking for a cheap interest rate. In order to speak to one of the experts, call 1-800-987-1397 any time you have a minute to spare.

Decision Time: Adjustable Rate Mortgages Verse Fixed Rate Mortgages

Unless money is of no concern to you when buying a home, choosing between adjustable rate mortgages and one with fixed rates is a very serious decision. Besides the fact that buying a home in general is a big financial decision, there are risks associated with both. Some of those risks are inherited early on in home ownership while others won’t rear their ugly head till later in the mortgage process. It is also a decision which requires forethought deep into the later years of your life. That can be a very ambiguous and difficult decision to make. Here are some reasons why you might choose type of mortgage over the other.

• Fixed rate mortgages have a set month to month payment plan that will never change for the life of the loan. The advantage is that the borrower is protected from a sudden and potentially unaffordable increase in monthly mortgage payments if the interest rates go up.
• The disadvantage of fixed rate mortgages is that the initial down payment can be up to 35% of the principal value of the home. This can make many homes unaffordable when interest rates are high.
• Adjustable rate mortgages have the advantage of a low down payment and cheap month to month payments during the first few years of the loan.
• The disadvantage and risk is that after a few years the month to month payments will adjust upwards reflecting high interest rates making the loan no longer affordable.

Let’s Start With A Fixed Rate Mortgage Plan

When the housing market is good and interest rates are low, finding the lowest fixed rate mortgage available is good advice. It is also a solid investment if you plan on keeping the home for a long time and eventually paying off the mortgage in its entirety. When the housing market was stable and people were staying in the same neighborhood for many years, a fixed rate mortgage was desirable because of its stability. You could count on the value of your home staying the same or increasing in value over time. However in areas where property values fluctuate, if you have a fixed rate mortgage and the value of your house decreases, you might be stuck paying a mortgage that is more expensive than the value of your home.

Tell Me About Adjustable Rate Mortgages

People often choose adjustable rate mortgages if they don’t believe they will eventually pay off the entire loan. Sometimes people look at an adjustable rate mortgage as a chance to flip a home, save some money over a few years and maybe find a better mortgage later on when times are better. You won’t have to spend as much money initially to get a home, you can even accomplish bad credit mortgage refinancing, and the first few years of home ownership will be light on your pockets. The monthly payments will be low. However the great risk is that after 3, 5, or 7 years the monthly payments increase to a price margin you can no longer afford and you have to default on a loan ruining you credit. Many people assume they can switch from an adjustable rate to a fixed rate when this happens, but it is not very easy.

Learn more about fixed rate mortgage refinance as well as the benefits of adjustable mortgage rates at www.real-estate-yogi.com. They are experts in the industry and can help you make the right decision. Call them for a free consultation any time at 1-800-987-1397. 

Fixed Rate Mortgage Loans - Considerations Towards A Fixed Rate Second Mortgage

Many people own homes and never consider the possibilities of using equity to add value to their life in other areas. The fear of taking on new debt always looms large in the minds of anyone who is struggling with the uncertainty of today’s economy. However, using equity in the form of a fixed rate second mortgage on your home doesn’t have to be the risk it is perceived to be.

• A second mortgage is also referred to as a home equity loan or line of credit. Just like your first mortgage, your second mortgage is also tied to your home, so if you don’t pay it back the lender can take your home.
• Second mortgages are popular right now because interest rates are low while home values are rising. Using equity is also tax deductible unlike other loans.
• The biggest advantage of using equity is that it might provide you with a lot of money to use however you choose.
• The main disadvantage of fixed rate second mortgages is that they are tied to your home, and you might have to make a significant down payment, which are between 3-6% of the entire loan. If your credit score isn’t good the interest rates won’t be either.

Money To Use As You Please

If you have been paying off a mortgage for a number of years you have built up quite a bit of equity. This money is technically yours to do with as you please provided you secure it to a second mortgage. Many people use this money to reinvest in their home or for home repairs. One good idea is to make “green” improvements, which can add value to your home and also reduce your yearly taxes. Some people send themselves or their children to college or higher education. Deciding what you will do with the money has everything to do with what type of loan you wish to have.

Home Equity Line Of Credit?

By paying a fixed rate mortgage throughout your child’s development you have built up about a decade or two worth of equity. A home equity line of credit could be the perfect type of loan to help boost your income and pay for those yearly tuition payments. Perhaps you have expensive medical procedures or medication coming up over the next few months or years. Credit Equity can do the same for you here too. A heloc loan is a tax-deductible line of credit that works like a credit card. You take out money whenever you need it for a set period of time and pay it back with interest.

A Lump Sum Of Money?

A home equity loan is basically borrowing a lump sum of money at one time, which will be paid back at a certain date as negotiated with your lender. These are typically used to help fund a home improvement project or any time you might need a chunk of cash for an emergency. It is not recommended to use equity to fund frivolous things such as a vacation or fancy boat because it is tied to your home and you could stand to lose it all.

If you have been paying fixed rate mortgages your whole life and have a need for some cash that is tax deductible you should really consider using your homes equity. If you are smart with the money it can be an excellent investment opportunity. Visit www.real-estate-yogi.com to learn more about home equity credit and loans. Call them to speak with a representative at 1-800-987-1397.

Fixed Rate Mortgage Refinance And You; A Good Team!!

Here’s my problem: I need to lower my monthly mortgage payment or we’re going to lose the house. That would break my heart. I love our home and would hate to let the bank take it back. My husband had to take a pretty hefty wage cut at work in order to keep his job, and that hurt. So now here we are, trying to figure out what to do. I’m told that getting a fixed rate mortgage refinance will help us, but I’m not sure how to go about it. Good thing there’s Real-estate-yogi.com, let me tell you. This free consumer resource website is a godsend! I learned a lot about how to get a 15-year fixed rate mortgage refinance that we can afford. Let me share more of what I learned from this wonderful website.

I found out that he benefits of fixed rate mortgage refinance include paying a lower interest rate, which lowers the amount we have to pay each month. It’s easy to save thousands of dollars on a 10-year fixed rate mortgage refinance because we wouldn't be paying on it for a long period of time. The same thing applies to the 15-year refinance we’re getting. Equity in house accumulates faster, too, with a shorter term mortgage, which is good for us in case we ever need a home equity loan. The only drawback that we considered is the possibility of a higher payment, rather than the lower one we want, because of the brevity of the loan. In our case, it did not raise our payment amount, for which I was very relieved.

Back in the day when we were younger and just starting out, we took out a fixed rate mortgage, and I’m glad we did. I’m equally glad that we got a 15-year fixed rate mortgage refinance. It’s comforting to know that the amount of our payment will never change. There’s security in that knowledge, and it’s much easier to plan for in our monthly budget. Real-estate-yogi.com guided me through the influx of financial information and misinformation that can come when you’re not sure how to find just the data that you need. Honestly, I don’t know what I would have done without this website’s assistance. Actually, I do: I would have gotten frustrated, given up the hunt for refinancing, and we would have lost the house.

Real-Estate-Yogi.Com is a user-friendly, no-cost website whose goal is to help people like you and I get solutions to their realty-related questions. The site is powered by over 200,000 professionals whose smart, quick responses to consumers’ inquiries are up-to-the-minute and reliable. For your complimentary consultation, dial 1-800-987-1397.

Comparing Fixed Mortgage Rates to Adjustable Mortgage Rates

The financial climate was rocky. I had a new house on the horizon and I couldn't be choosy about my mortgage. I knew long term mortgages would be more difficult with forecasted increases in interest. I was in love with the property; beautiful neighborhood near friends and even a few family members. My Real-Estate-Yogi representative showed me my mortgage options. He told me about the influence of market factors. Although aspects of the adjustable rate option seemed appealing, I decided on the fixed rate mortgage  option; looking for a predictable monthly pay structure that would not go up when interest rates were expected to climb.

The Adjustable Rate Mortgage Option

The adjustable rate mortgage option caught my ear when the representative mentioned “low initial interest”. They said that over a period of time the interest would remain at a rate below market averages. I was on it. Then they said, however, after the fixed period the interest rate would adjust from time to time, and over the long term surpass the going rates of current fixed rate deals.

Again, for a short term mortgage this would work out great in most financial climates, and would help me out as a long term mortgage in a climate of declining interest rates, but, again, I was advised that interest rates were expected to rise. After the fixed period the interest rate adjustments are based on indexes determined by standards that dictate the market, such as the London Interbank Offered Rate.

The Fixed Rate Mortgage Option

Luckily current rates were not that high. Otherwise the going rates of the fixed rate option may have been too high for me to afford while only beginning to get my life together. With the ARM option, I would have refinanced after the initial interest term, or after I got my first raise. The truth is that going rates on fixed interest mortgage deals were affordable at this time, and they would remain with increasing salary.

With a fixed rate mortgage, payments and interest rates are fixed over the mortgage. The homeowner pays a fixed rate containing portions of interest and principal. Home owners start out by paying more towards the interest than the principal. These amounts adjust over the period of the mortgage but stay within the fixed limit.

Comparing Mortgage Deals

Rising interest rates were a big determinant in selecting the fixed rate mortgage. And sure enough they began to rise in no time. In looking at Adjustable Rate Mortgages vs. Fixed Rate Mortgages, it was crucial to note how rising interest rates would affect the pay structure. Certain ARMS are structured so that interest rates rise significantly over a short period of time.

 I took out a big 30 year fixed interest loan on my property because I could afford the lower monthly payments, and would have little trouble once my salary increased. Most of the long term loan is devoted to paying off the remaining interest at the end of the principal balance.

In a Fixed Rate mortgage Comparison, shorter term mortgages result in lower overall payments, while longer terms make for lower monthly payments. Shorter term payments usually mean lower interest rates, however monthly payments are higher to make up the entire principal faster.

Real-Estate-Yogi.com can help consumers choose an ideal mortgage and hook up with lenders. They offer free consultations for their popular consumer service. Call today at 1-800-987-1397.

Switch From Vulnerable Mortgage Rate To Fixed Rate Mortgages

My husband and I have a beautiful home with lots of landscaping, a tire swing hanging from our front yard elm, and plenty of room for the kids to run around safely. We’re very lucky, although we have worked very hard for what we have. Recently, we've begun considering taking out a fixed rate second mortgage. I needed information about this subject, so I went online to my very favorite website, Real-estate-yogi.com. As usual, the site was very helpful. It clearly explained what fixed rate means, which is that the interest rate on the loan will not fluctuate for the life of it. Simple enough!

I found out that, if we go with the fixed rate remortgage, the interest rate will be higher for it than for our original mortgage loan. I also learned that the application process for the second mortgage is the same as it was for the first one: I needed to provide all the usual financial documentation and proof of personal assets that we've acquired over the past several years, and I discovered I’d need a new appraisal on the house. I had no idea that getting a 2^nd mortgage would be relatively easy. Of course, having an excellent combined credit score didn't hurt us, either.

Real-estate-yogi.com also taught me what a fixed rate reverse mortgage is and how it works. A reverse mortgage is designed for senior homeowners and is based on how much equity is in the house. The reverse mortgage loan does not have to be repaid until the last member of the family either passes away or opts to sell the house. In order to qualify for a reverse mortgage, I’d have to be at least 62 years old for the FHA to supply the loan, and I’d have to own the house free and clear, no liens against it. I found all of this quite fascinating, as I’m not too far from 62 now.

While I was looking through Real-estate-yogi.com, I also gathered information on mortgage refinance through the FHA. This may be an alternative choice for us, rather than taking out a second mortgage. We already have an FHA mortgage, so this piqued my interest. Apparently, the FHA Streamline refinance is the easiest way to refinance a mortgage. The nice thing about Streamline refinance is that it doesn't need a new appraisal of our home; it lets us use the house’s original price as its current value. There’s also no verifying of income, job, or credit score. I talked to my husband, and we chose to go this route.

I have seldom come across a more informed, user-friendly website than www.Real-estate-yogi.com. There are always knowledgeable representatives available to help, and its operational 24 hours a day, every day of the year. For your free consultation, dial 1-800-987-1397.