Select a Mortgage in Atlanta, GA Atlanta Homepage: Real Estate Homepage

WHAT TYPES OF LOANS ARE AVAILABLE AND WHAT ARE THE ADVANTAGES OF EACH Fixed Rate Mortgages Payments remain the same for the the life of the loan Types 15-year 30-year Advantages Predictable Housing cost remains unaffected by interest rate changes and inflation. Adjustable Rate Mortgages (ARMS) Payments increase or decrease on a regular schedule with changes in interest rates; increases subject to limits Types Balloon Mortgage- Offers very low rates for an Initial period of time (usually 5, 7, or 10 years); when time has elapsed, the balance is clue or refinanced (though not automatically) Two-Step Mortgage- Interest rate adjusts only once and remains the same for the life of the loan ARMS linked to a specific index or margin Advantages Generally offer lower initial interest rates Monthly payments can be lower May allow borrower to qualify for a larger loan amount WHEN DO ARMS MAKE SENSE An ARM may make sense If you are confident that your income will increase steadily over the years or if you anticipate a move in the near future and aren't concerned about potential increases in interest rates. WHAT ARE THE ADVANTAGES OF 15- AND 30-YEAR LOAN TERMS 30-Year In the first 23 years of the loan, more interest is paid off than principal, meaning larger tax deductions. As inflation and costs of living increase, mortgage payments become a smaller part of overall expenses. 15-year Loan is usually made at a lower interest rate. Equity is built faster because early payments pay more principal. Also.. Buying Articles Selling Articles All Real Estate Articles [ ..More About Atlanta Select a Mortgage ]