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Articles in Category: Adjustable Rate Mortgage

March 8, 2012

What You Should Know About FHA ARM Loans

By Joe Wallace

Did you know the FHA loan program gives borrowers the option of choosing an adjustable rate mortgage, also known as an FHA ARM loan? Adjustable rate mortgage loans offer an introductory interest rate which, according to the terms of the individual loan, change after the introductory fixed rate period. How long the introductory period may last can vary depending on the loan. Once the introductory rate period has elapsed, the adjustable rate is subject to a cap which can apply year-to-year, or over the lifetime of the FHA loan. The introductory interest rate is often lower than the fixed rate of conventional home loans, making ARM loans attractive to some borrowers depending on their financial needs and goals. ARM loans are comprised of four basic components; the index, margin, interest | more...

 

April 25, 2011

FHA Loans: Comparing Adjustable Rate Mortgages

By Joe Wallace

Some borrowers decide an adjustable rate mortgage is an option they’d like to look into. While there is a natural risk involved with adjustable rates–the interest rate can increase and raise the amount of monthly payments–borrowers who shop around and compare terms may be able to get into an adjustable rate mortgage that has more favorable terms. It’s a smart idea to go into an adjustable rate mortgage with the notion that you should refinance later into a fixed rate loan. The FHA streamline refinancing program has a way to do just that for those who have FHA ARM loans. Other refinancing options may be available for conventional-to-FHA loans, we’ll explore refinancing issues in another blog post. What should a borrower do to find the best adjustable rate mortgage? To | more...

 

February 28, 2011

Where Do I Go for an FHA Insured Home Loan?

By Joe Wallace

First time home buyers often don't know where to start when it comes time to find that first home. Locating properties for sale isn't challenging--there are plenty of for sale signs in or near practically every neighborhood and even more to browse in the local papers and online real estate listings. But finding the home is only part of the challenge. Where does a buyer find a suitable lender? A buyer who wants an FHA home loan might not know where to start looking to find a lender. Conventional borrowers have it easier--any suitable bank with the right terms will do.

 

February 21, 2011

How to Shop For an FHA Home Loan

By Joe Wallace

Applying for an FHA loan is, in the minds of some borrowers, the beginning of the process. But when you fill out an application for an FHA insured mortgage, you should actually be ending one process and starting another. One of the most important aspects of getting an FHA loan is finding the right lender and the most favorable terms. But how should an FHA borrower do that? Some go into their FHA loan research thinking the only real data needed is a list of interest rates on offer and calculating the monthly payment amounts is enough.

 

February 18, 2011

FHA Loans: Important Details Of Adjustable Rate and Interest-Only Mortgages

By Bruce Reichstein

When a first-time home buyer is searching for a home to buy with an FHA guaranteed loan, the buyer isn't just shopping for a home--they're also shopping for a home loan. There are many options to choose from, one of which is the adjustable rate mortgage or ARM loan for short. Another is the interest-only mortgage loan, also known as an I-O mortgage. We

 

February 11, 2011

FHA Loan Costs and Interest Rates

By Joe Wallace

When you're shopping around for a lender for an FHA home loan, it's good to remember that buying a home involves costs above and beyond the asking price of the home; some of these costs can be estimated by the lender to give you a rough idea of how much you should budget for when planning your finances for a new FHA mortgage. The basic costs of buying real estate include the interest rate--how much will your loan cost over its lifetime? It's easy to dismiss a percentage point up or down until you do the math--one percentage point lower could save you thousands over the life of a 30-year FHA mortgage. That's one reason why discount points are important--paying more up front can save you money later down the | more...

 

February 9, 2011

Using the FHA Lender List

By Joe Wallace

For first-time home buyers, the FHA loan process seems complicated. The loan application itself requires a great deal of information including credit and employment history, a record of your previous residences, and a list of your verifiable income. Any home loan application requires this level of detail in order to process the loan correctly, but for some borrowers just getting to that point can be challenge. What does a buyer do when they don't know who to submit a loan application to?

 

February 8, 2011

FHA Loans: Factors that Affect House Prices

By Joe Wallace

When it's time to start thinking about buying a home with an FHA mortgage, first-time home buyers often need to learn a few things about the nature of the housing market. One of the most important lessons a new house hunter learns is that not all properties are created equal, and even those that do seem similar have unique issues that may affect the price and availability of the property. The housing market is an ever-changing thing. Whether you apply for a conventional or FHA insured mortgage loan, much depends on the place where you're conducting the search for a suitable home.

 

February 2, 2011

FHA Loans: Using Online Calculators to Choose the Loan For You

By Bruce Reichstein

When you want to get an FHA loan--especially for that first home purchase--there are a lot of options to choose from. How does a buyer know which FHA loan product to choose? There are many ways to answer that question, but it all depends on the buyer, what his or her goals are, and how important certain kinds of savings are to the future home owner.