Latest Articles
Home Equity Loans – Beware of Appraisal Fraud
A new report by the independent Demos group has revealed what may not be a surprise to many people – corruption is rampant in the home appraisal industry. The bust in the dot-com market of some five years ago has left would-be lenders with a surplus...
No Down Payment Poor Credit Mortgage Loans - No Money Down Loan Information
Finding a "no money down" mortgage loan is actually easier for
someone with poor credit. Subprime lenders are more willing sign
off on these deals than conventional lenders. But before you
jump into a mortgage contract, make sure you understand...
Second Home Equity Mortgage Loans
This article provides useful, detailed information about Second Home Equity Mortgage Loans.
The people in the market today view a second home-equity mortgage loan as synonymous with a second mortgage. A second home...
ARM Loans
ARM stands for Adjustable Rate Mortgage. There are various types
of ARM products with the most common being the 1/1, 3/3, 5/1 and
7/1 ARM. The first number tells you the length of time the Rate
will be locked. The second number indicates the length of the
adjustment period after the initial rate lock period. For
example, the 7/1 ARM has the rate locked for seven years or 84
months. Then it will adjust annually thereafter. ARMs can be
amortized over 15, 20 or 30 year time periods which can allow
for lower monthly payments. One fear that most consumers have is
that the rate can adjust. However, most ARMs come with caps
which are usually 2% per year or 6% over the life of the loan.
This means, during the first adjustment period, the rate can't
go up or down more than 2%. Let's look at the 7/1 ARM again. If
the initial rate is 5.25%, then the rate can't go higher then
7.25% at the end of the initial rate lock period of seven years
or 84 months.
ARM rates tend to be initially lower than fixed rate
mortgages.
If you plan on only being in your home for 7 to 10 years, lock
in a 7/1 ARM and take advantage of the lower rate versus a 30
year fixed rate mortgage. Everyone's situation is different, but
the average life of a mortgage loan ranges from 7 to 12 years
because people often move or refinance their loan. So, why not
enjoy the lower rate?
For more information on ARM products, contact Mary Lou Call at
First Federal of Lakewood. She can be reached at 216-529-5637.
Or for more real estate information and articles visit
http://www.youshouldown.com
About the author:
Cecilia Sherrard is a full time dedicated Realtor in Northeast
Ohio. With years of experience and knowledge, she has maintained
a multi-million dollar producer status. Servicing areas such as:
Westlake, Lakewood, North Olmsted, Rocky River, Cleveland, Brook
Park, Parma, etc. Visit her website at
http://www.youshouldown.com
Written By: Cecilia Sherrard/Mary Lou Call