Interest only mortgage loan calculator
Major types of loans are:
1.Mortgage loans: Loans you take out to pay for your home.
2.Home Equity loans and lines of credit: loans you take out using the equity in your home as colleteral.
3. Consolidation loans and refinancings: loans you take out to repay other loans.
There are first mortgage and second mortgages in mortgage loans.
Fixed - Rate mortgage:
A home loan with a predetermined fixed inteest rate for entire term of your loan. This means that the interest rate will never change for as long as you have the loan.
Principal : The amount of money borrowed on a loan.
Interest rate:
cost for the use of a loan, usually expressed as a percentage of the loan, paid over a specific period of time. The interest rate does not include fees charged for the loan.
APR : Annual percentage rate:
The annual cost of a loan to a borrower. Like an interest rate, the APR is expressed as a percentage of the loan amount. Unlike an interest rate,however, it includes other chargesor fees to reflect the total cost of the loan. The Federal Truth in Lending Act requires that every consumer loan agreement disclose the APR. Since all lenders must follow the same rules to ensure the accuracy of the APR, borrowers can use the APr as good basis for comparing certain costs of loans.
Mortgagee : The lender or other party named in the mortgage as the party who\'s entitled to receive repayment of the home loan.
Mortgagor: The borrower or other party named in the mortgage as the party obligated to repay the home loan.
Every mortgage company and banks and other finance institutions are maintained these mortgage rates calculators as their confortability.
monthly repayment calculators are also maintained.
THE MOST IMPORTANT 4 LOAN PRODUCTS IN THE AMERICA
MORTGAGE COMPANIES:
1. Loan Product: 30 years Fixed
The 30 year Fixed is a fully amortized loan(paid off at the end of the loan period) with a fixed interest rate for 360 monthly payments. The payments are paid monthly and are due the 1st of each month. The payment on this loan remains fixed at the original interest rate for the life of the loan.
Rate:6.000%
APR :6.280%
2. Loan Product: 15Year Fixed
The 15 Year Fixed is a fully amortized loan(paid off at the end of the loan period) with a fixed interest mortgage rate for 180 monthly payments. The payment on this loan remains fixed at the original interest rate for the life of the loan.
Rate: 5.750%
APR :6.204%
3. Loan Product: 5 Year ARM
The 5Year ARM(Adjustable Rate Mortgage) is a fixed mortgage rate for the first 5 years, and then it converts to an adjustable rate loan that can adjust
every 6months based on the 6month LIBOR** index plus a margin. The total loan term is 30 years.
Rate : 5.750%
APR : 7.282%
4. Loan Product: 3Year ARM
The 3 year ARM is a fixed mortgage rate for the first 3years, and then it converts to an adjustable rate that can adjust every 6months based on the 6month LIBOR** index plus a margin. The total loan term is 30 years.
RATE: 5.625%
APR: 7.533%
Generally fixed-rate mortgage, Adjustable-rate mortgage and combination mortgage are available in thebanks and mortgage companies in USA.
Fixed-rate mortgage: you pay the same interest rate and same monthly payment of pricipal and interest for the duration of the mortgage. The most common terms are 30,20 and 15 years. fixed-rate mortgages are best if you plan on being in your home for a while.
Adjustable-rate mortgage(ARM):The interest rate stays fixed for an initial interest rate period, Which ranges1 to 7 years. Then the rate will adjust up or down annually for the life of the loan based on a specified index. An ARM is a good option if you plan on staying in your home 5 to 7 years or less.
Combination Loan: A loan where you receive a first mortgage combined at the same time with a second mrtgage. This option may help you avoid the costs of private mortgage insurance(PMI) and/or the higher rate of a jumbo loan with as little as 10% down.
The most popular combinations are 80-10-10(80%first, 10% second, 10% down),75-15-10(75% first, 15% second,
10% down).
Important points concentrate by borrowers:
*Lower down payments than most other financing options so you won\'t need as much cash to buy a home.
* Competitive interest rates.
*Manageable payments for every budget.
*Reduced closing costs and mortgage loan fees.
*Income tax reduction.
In the early years of a mortgage, most of your monthly payment covers interest on the mortgage. In most cases, the mortgage interest is deductible from your taxable income, lowering your overall tax bill.
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