Comments on: What is the differences between all these different mortgage terms? http://www.westvalleypros.com/2009/08/what-is-the-differences-between-all-these-different-mortgage-terms-3/ Phoenix Short Sales - Phoenix Short Sale Experts - Phoenix Realtor Mon, 04 Oct 2010 16:21:00 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: MK Financial Solutions http://www.westvalleypros.com/2009/08/what-is-the-differences-between-all-these-different-mortgage-terms-3/comment-page-1/#comment-5710 MK Financial Solutions Fri, 08 Jan 2010 23:40:59 +0000 http://www.westvalleypros.com/2010/01/what-is-the-differences-between-all-these-different-mortgage-terms-3/#comment-5710 Have a look at http://mortgagebrokers4london.co.uk/mortgage_guide.htm most of your questions will be answered.<br><b>References : </b><br> Have a look at http://mortgagebrokers4london.co.uk/mortgage_guide.htm most of your questions will be answered.
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]]> By: Big daddy http://www.westvalleypros.com/2009/08/what-is-the-differences-between-all-these-different-mortgage-terms-3/comment-page-1/#comment-5709 Big daddy Fri, 08 Jan 2010 23:03:59 +0000 http://www.westvalleypros.com/2010/01/what-is-the-differences-between-all-these-different-mortgage-terms-3/#comment-5709 It's very hard to say what mortgage would be good for you since I don't know what your goals are for your kids if you have any, retirement goals, etc. I'll go with the options presented. Basically the 30 year fixed is pretty simple. You will have the same payment for 360 months. Your interest rate is locked and will not change. The 5/1 arm means that you will make interest only payments for the first 5 years (similar to an interest only mortgage), and the begin making principle and interest payments after the 5th year, but your rate is adjustable and will most likely rise. The 7/1arm is the same except your making interest only payments for 7 years, then your loan adjusts. The one statement you make that caught my attention was that your planning to stay in the house for at least 5 years. Does this mean that you could leave before 7 years? If so, the 7/1 could be an option. If you know your not staying in the home for more than 7 years, why pay the principle? If your not sure, then go with a fixed product as life happens then all of the sudden, 7 years later your payment doubles and your budget is shot. Your correct, there are many, many programs out there, but the job of your broker or loan officer is to talk to you, know you and customize a mortgage solution that not only steers you in the correct path now, but achieves your future goals. Good luck and feel free to ask any questions<br><b>References : </b><br>mortgage broker It’s very hard to say what mortgage would be good for you since I don’t know what your goals are for your kids if you have any, retirement goals, etc. I’ll go with the options presented. Basically the 30 year fixed is pretty simple. You will have the same payment for 360 months. Your interest rate is locked and will not change. The 5/1 arm means that you will make interest only payments for the first 5 years (similar to an interest only mortgage), and the begin making principle and interest payments after the 5th year, but your rate is adjustable and will most likely rise. The 7/1arm is the same except your making interest only payments for 7 years, then your loan adjusts. The one statement you make that caught my attention was that your planning to stay in the house for at least 5 years. Does this mean that you could leave before 7 years? If so, the 7/1 could be an option. If you know your not staying in the home for more than 7 years, why pay the principle? If your not sure, then go with a fixed product as life happens then all of the sudden, 7 years later your payment doubles and your budget is shot. Your correct, there are many, many programs out there, but the job of your broker or loan officer is to talk to you, know you and customize a mortgage solution that not only steers you in the correct path now, but achieves your future goals. Good luck and feel free to ask any questions
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mortgage broker

]]> By: efflandt http://www.westvalleypros.com/2009/08/what-is-the-differences-between-all-these-different-mortgage-terms-3/comment-page-1/#comment-5708 efflandt Fri, 08 Jan 2010 22:15:59 +0000 http://www.westvalleypros.com/2010/01/what-is-the-differences-between-all-these-different-mortgage-terms-3/#comment-5708 30 yr fixed is usually safest for the long term because your interest rate and payments remain the same (you can always pay down principal early to reduce total interest and number of payments, as long as you avoid a prepayment penalty). The 5 or 7 year ARM resets after that number or years which could end up at higher cost and higher payments varying each year after that, depending upon interest rates at that time. The reason for the current mortgage mess is that people who could barely afford the initial rates did not realized how much a 3-4% interest rise would affect payments they could no longer afford. They expected to sell or refi by then, but rising interest rates and dropping property values made that impossible.<br><b>References : </b><br> 30 yr fixed is usually safest for the long term because your interest rate and payments remain the same (you can always pay down principal early to reduce total interest and number of payments, as long as you avoid a prepayment penalty).

The 5 or 7 year ARM resets after that number or years which could end up at higher cost and higher payments varying each year after that, depending upon interest rates at that time. The reason for the current mortgage mess is that people who could barely afford the initial rates did not realized how much a 3-4% interest rise would affect payments they could no longer afford. They expected to sell or refi by then, but rising interest rates and dropping property values made that impossible.
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]]> By: ChrisB http://www.westvalleypros.com/2009/08/what-is-the-differences-between-all-these-different-mortgage-terms-3/comment-page-1/#comment-5707 ChrisB Fri, 08 Jan 2010 22:06:59 +0000 http://www.westvalleypros.com/2010/01/what-is-the-differences-between-all-these-different-mortgage-terms-3/#comment-5707 Interest.com has an EXCELLENT table for checking out all the pros/cons of different mortgages. I believe it's just what you need: http://mortgages.interest.com/content/firsttime/whichmtge.asp I would also recommend Bankrate.com for looking up general mortgage rates and subsequent payments. Don't forget to factor in escrow and property taxes in their estimates.<br><b>References : </b><br> Interest.com has an EXCELLENT table for checking out all the pros/cons of different mortgages. I believe it’s just what you need: http://mortgages.interest.com/content/firsttime/whichmtge.asp

I would also recommend Bankrate.com for looking up general mortgage rates and subsequent payments. Don’t forget to factor in escrow and property taxes in their estimates.
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