Fixed-Rate Loan benefits include:

• No change in monthly principal and interest payments regardless of fluctuations in interest rates
• More stability may give you “peace-of-mind”

Fixed-Rate Loan disadvantages include:

• Higher initial monthly payments compared to those of adjustable rate mortgages
• Less flexibility

An adjustable rate mortgage, which may qualify as a second mortgage loan, does not apply the same interest rate toward monthly payments for the life of the loan. Throughout the life of that loan, the homebuyer’s principal and interest payment for second mortgage loans will adjust periodically based on fluctuations in the interest rate.

For example, a lender of second mortgage loans could offer a 30-year adjustable rate mortgage loan to a homebuyer at an initial 6.5% interest rate. During an adjustment period for the ARM Mortgage loan, the market interest rate could rise to 8.0%, resulting in a significantly larger interest payment. Similarly, the market interest rate could decrease to 6.0%, resulting in lower interest payments.

ARM Mortgage benefits include:

• Initial payments lower due to lower beginning interest rate, usually about 2 percentage points below the fixed rate
• Ability to qualify for a higher loan amount due to lower initial interest rates
• Lower interest payments if the interest rate drops over time
• Interest rate caps limit the maximum interest payment allowed for the loan
• ARM Mortgage disadvantages include:
• Initial lower interest rate and monthly payments are temporary and apply to the first adjustment period. Typically, the interest rate will rise after the initial adjustment period.
• Higher interest payments if the interest rate rises over time

To have one of our lending partners help you evaluate how you might best secure a great rate on a mortgage loan simply fill out our 1 Step Mortgage Home Loan Request Form.

• Reduce Monthly Mortgage Payments
• Security of a Fixed Rate Home Loan
• ARM (Adjustable Rate Mortgage) Savings
• Take Cash Out
• Eliminate Mortgage Insurance
• Reduce Monthly Mortgage Payments

Home mortgage refinancing can be a great way to lower monthly mortgage payments. There are two prime ways to accomplish mortgage refinancing. The simplest reason for home mortgage refinancing with a new home loan is because most lenders are offering a lower current interest rate than your existing mortgage. In fact, a drop of just a half to three quarters of a percent in mortgage refinancing can lower your payment significantly.

You can also lower your mortgage payments through mortgage refinancing by changing your mortgage term. Switching from a 15 to a 30-year home mortgage refinancing term can significantly lower your monthly payment. If long-term savings is your prime goal with home mortgage refinancing, you may be able to save thousands of dollars over the life of your loan and pay off your loan much sooner by reversing this process and switching to a shorter loan term with mortgage refinancing.

With rates near historical lows, this may be a perfect time to save with home mortgage refinancing. To have one of our lending partners help you evaluate potential savings with mortgage information, simply fill out our 1 Step Mortgage Home Loan Request Form.

Security of a Fixed Rate Home Loan

The benefit of an adjustable rate loan is the reduced interest charge. Conversely, the danger is that when interest rates rise, the borrower may be forced to pay significantly higher rates. While fixed rate loans will usually have a higher rate than an adjustable at the outset, they aren’t subject to shifting market conditions. With rates at near historical lows, this may be time to secure the “peace of mind” provided by locking in a rate for the term of your mortgage.

Your security may be even further enhanced if you expect to be in your home for a long term. To have one of our lending partners help you evaluate Fixed Rate Loans under the currently favorable market condition, simply fill out our 1 Step Mortgage Home Loan Request Form.

ARM (Adjustable Rate Mortgage) Savings

It may make sense to refinance your mortgage into an ARM if you plan on being in your home for only a few years. After all, why pay the higher current interest rate on a 15 or 30 year fixed mortgage, when you can pay a lower rate (Usually, but subject to greater risk) for the shorter period of time you’ll be living in the home? If, however, you decide to stay for a longer timeframe, you may choose to consider the fixed rate loan.

If you already have a fixed rate mortgage and are considering moving within the next few years, it may make sense to consider refinancing into an ARM. Not only can this lower your monthly payment, but by choosing certain loan types, you can refinance your home loan with no out of pocket expenses.

To have one of our lending partners help you evaluate how refinancing into an ARM may be right for your situation, simply fill out our 1 Step Mortgage Home Loan Request Form.

Take Cash Out

Would you like to have money to pay off credit cards and other high interest debt, finance home improvements, buy a new car, finance a second home purchase, pay a college tuition or even go on vacation? If so, perhaps a cash-out mortgage refinance is for you.

Typically, you may be able to take out up to 75% of the value of your home, but with some options this may rise to 90%. Also, unlike borrowing on credit cards, which utilize compound interest calculations, mortgages use simple interest, which may save you significant interest. Moreover, interest paid on mortgages is tax deductible (see your tax professional to evaluate) and this may result in additional savings.

To have one of our lending partners help you evaluate how to CASH OUT, simply fill out our 1 Step Mortgage Home Loan Request Form.

Eliminate Mortgage Insurance

If you purchased your home with less than 20% down, you probably have a monthly mortgage insurance payment along with your principal and interest. But, since your purchase, you probably have increased your equity percentage. In fact, because of rising home values, you may have exceeded the 20% figure simply because your home has become more valuable. Unfortunately, you may not be able to cancel your mortgage insurance yet.

A home loan refinance to eliminate mortgage insurance should be designed to not only get a loan without mortgage insurance, but also to find a rate that is lower than your current loan. The ideal situation would be to reduce your rate by more than just the cost of your monthly mortgage insurance payment alone.

To have one of our lending partners help you evaluate how you might be able to eliminate mortgage insurance and reduce your rate, simply fill out our 1 Step Mortgage Home Loan Request Form.