Mortgage Loan :: How to Mortgage Your Home

Types of Mortgages and Which Mortgage Loan is the Best for You

Just wanted to quickly discuss the advantages (in stability and overall cost) of a 30-year fixed rate mortgage over an adjustable rate mortgage (aka ARM).

Adjustable Rate

With an ARM, you may get a very low interest rate to begin with, but once it resets and that rate adjusts, you might be looking at payments that you couldn't afford even if you stopped buying anything else for the month to cover it! Many folks are in foreclosure now for this very reason.

Fixed Rate

30-year fixed rate mortgages are more stable and predictable, and today you can get such a great deal due to low interest rates that I can't think of a reason NOT to go with one!

What to Watch Out For

Anything with a "balloon payment"
Fixed for only a certain length of time
Interest-only mortgages
Loan officers who don't want you to read the paperwork
Pushy mortgage companies

Very Important

A home loan is something you will be obligated to pay for decades. Be SURE to read every word of the paperwork you receive, and make copies of it as backup. If you have or can afford to have a lawyer, ask him or her to read over all paperwork to make sure it's fair and legit before you sign. The legal cost and extra time will be well worth it. If your mortgage company has a problem with this, you might want to consider a different shop.

So remember that YOU are the customer and the mortgage company is working FOR YOU. Keep your options open and be conscientious -- there are many great deals out there, especially right now -- and you will find the way to your new home.

Feel free to share/link to this page if you think it will help someone else!

How to Get an FHA Loan :: HUD Mortgages

From the US Department of Housing and Urban Development -- http://www.hud.gov

FHA loans have been helping people become homeowners since 1934. How do they do it? The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so your lender can offer you a better deal.

• Low down payments
• Low closing costs
• Easy credit qualifying

What does FHA have for you?


Buying Your First Home?
FHA might be just what you need. Your down payment can be as low as 3.5% of the purchase price, and most of your closing costs and fees can be included in the loan. Available on 1-4 unit properties.

Want a fixer-upper?
FHA has a loan that allows you to buy a home, fix it up, and include all the costs in one loan. Or, if you own a home that you want to re-model or repair, you can refinance what you owe and add the cost of repairs - all in one loan.

Financial help for seniors
Are you 62 or older? Do you live in your home? Do you own it outright or have a low loan balance? If you can answer "yes" to all of these questions, then the FHA Reverse Mortgage might be right for you. It lets you convert a portion of your equity into cash.

Want to make your home more energy efficient?
You can include the costs of energy improvements into an FHA Energy-Efficient Mortgage.

How about manufactured housing and mobile homes?
Yes, FHA has financing for mobile homes and factory-built housing. We have two loan products – one for those who own the land that the home is on and another for mobile homes that are - or will be - located in mobile home parks.

The poster of this blog has no affiliation with HUD or any mortgage company. Posted strictly as a public service.

Home Mortgage Loan : Get the Best Mortgage for You

Here are a few quick and simple guidelines you may want to follow in looking for the right mortgage (or if you're ready to take advantage of low interest rates and refinance!):

Know What You Can Afford

The first and most vital step in taking the plunge into a home mortgage is knowing how much you can afford (realistically). Why commit to decades of monthly payments if you know deep down that you might find yourself struggling to make them? If you want a more expensive home and plan on calling it your own it some day, you can always put your current home on the market and upgrade when you're able!

Shop Around for the Best Deal

Even if the first mortgage company you consider is offering a great deal, there may be a better one out there waiting for you. Always shop around and find the right one, rather than the quickest one. This is a commitment that will likely last the better part of your life and you have to think about the long run.

Trust Your Gut Instinct

So you've done your homework, know what you can afford and looked around for the best deal. Now what? Well, it's not all about money. Consult your gut instinct and think about the first impression you got from each candidate. The one that seems the most honest and easy to work with may well be your best choice. If you are being pressured into a deal and you don't feel comfortable, take a step back, take a deep breath, and take some time to yourself to think about it. You'll be glad you did!

The above tips are meant to help prospective or current homeowners make wise decisions for themselves. Follow or ignore at your own risk :)