How to Shop for Low, Interest Only Mortgages

Where do you find low interest, interest only mortgages? Almost every store on the street offers these types of mortgage products, but who is the best, and who is the lowest? That’s going to take some work on your part, and maybe just a little luck.

What kind of information will you need in order to shop for and secure a great interest only mortgage, with a great low interest? Well, you’re definitely going to need a good credit rating, proof of income, an appraisal on the property, and a little bit of luck. There are several products out there in the interest only mortgage segment of the market, and a few are actually going to have a pretty low interest rate tied to them.

For example, the 3/1 ARM, or the 5/1 ARM, these mortgages should have great interest rates, and if you have great credit, you should be able to find financing to suit your budget, your desire for a low interest rate, and an interest only mortgage that you can live with. These types of adjustable rate mortgages offer the interest only feature for a very limited time, and this is what the average consumer should discipline him or herself to use for financing. Extending the interest only option out past these years, could put the consumer in a dire position, should the real estate market take a downward turn, they’re going to be left with a huge mortgage, and property that is no longer worth the original mortgage amount. Now, that’s not likely to happen since the value of the average home in America has seen a steady 5 to 6% growth for the last 10 years. But, it could happen. Take a look at the stock market after the tremendous growth spurt of the late nineties.

Other variables in your quest for a low interest rate will be determined by the type of lending institution you choose, the determination of any government program eligibility, and your geographical location.

Banks are traditionally a little higher with their down payment requirements, but their interest rates are usually lower than those of a mortgage company. The exception: online mortgage lending. Thanks to the fact that this is an area of growth that everyone and every company are promoting, they’re striving to compete with even the lowest interest rate lenders, in order to grow their market.

What kinds of government approved mortgage loan programs are available for the low interest-only mortgage shopper today? There are actually more programs available today than any other time in recorded mortgage history; and the ability to qualify for these programs is at an all-time high. Fannie Mae, or the Federal National Mortgage Association and Freddie Mac set guidelines and product availability for homeowners and residents that quality for low- to moderate income based mortgages. They also offer low-interest only mortgages in order to accommodate an ever broadening market. The graduated payment mortgage is an option for FHA homeowners who currently have low to moderate incomes but expect them to increase substantially over the next few years; this can be compared to a balloon note or the interest only products in use today.

Your location will play a key role in your ability to obtain the lowest interest rate using the interest-only mortgage option, also. Prospective homeowners looking to purchase a home in a high end, resort area will, of course, have more choices available, as there are more buyers and sellers competing, as well as lenders for business. The other geographical contributing factor is the real estate market in your area. If the market is great, prices are not suppressed, and there is moderate movement in the buy and sell market, it increases your chances of obtaining the low interest rate you’re seeking.

The interest only mortgage product and a low interest rate are not mutually exclusive. They can be paired, and under the right circumstances produce a winning mortgage product for the right consumers. The route to achieving this goal will take education on the part of the consumer, hard work, and a little luck in locating the right mortgage lender.

Buying or Selling, is the Mortgage Your Only Option?

Today, thanks to the ever-increasing use of the internet to seek out homes for sale, and the increased participation of homeowners in the buying and selling process, there is greater interaction between the buyer and seller. Not only is this good for public relations, it is also an excellent opportunity to explore other funding options, for the buyer and for the seller.

It is normal on the part of the buyer to assume their only option when purchasing a home is to obtain a mortgage, but the traditional lending process. This is not always the case, and today more than ever, buyers and sellers are coming together with creative and accommodating ways to affect the purchase, or sale, of the home depending upon your status as buyer or seller.

Quite often, individuals interested in purchasing a home lack the 20% down payment often required from the lender. Provided the seller has established equity of the home, there are other options for the buy and sale agreement. Seller financed mortgages are the most common alternative mortgage option exercised; seller financed mortgages however, are not the only option that can be considered. In this article, were going to take a look at some of the alternative mortgage options that are rarely exercised, but that do provide tremendous benefit to the buyer and seller.

As a seller, the conditions must exist that allow you to offer the buyer alternative options. Your mortgage balance must be considerably less than the fair market sale price or your hands are basically tied. Imagine a scenario: you're ready to sell your home, the buyer is ready to purchase your home, and they simply do not have a 20% down payment. What they do have is a 5% down payment, and the desire to work with the seller and the mortgage lender. You're asking price for the home is $80,000 and the appraised value of the home is $85,000; your existing mortgage is $50,000 and the lender requires the proposed buyer to provide a $16,000 down payment. How can a solution be reached? If you, as the seller are willing to take a second lien on the property, there is a workable solution. The fact that the home appraises for more than the asking price, automatically provides the buyers with a $5,000 level of equity, so they only need $11,000 more to reach a 20% down payment. They have $4000; in order to accommodate the buyers, you could accept $74,000 in upfront mortgage money from the lender, and take a second lien on the $6000 difference. This method works only if you’re willing to take the second lien, and the buyers are credible and reputable individuals.

Taking second liens or second mortgages are increasing in popularity as a means to sale increasing value real estate in today's rapidly expanding market. There are other spins offs from the basic formula described, however the scenario above is the most common and provides the buyer and seller with the basis for expanding with creative add- ons. Of course, the seller financed mortgage is still the meat and potatoes of the alternative financing industry.

How does the seller financed mortgage work? Generally, it works in this manner: if the seller owns the home outright he or she may choose to finance a mortgage for the buyer, and set up an amortized loan. Thanks to the readily available personal computer, loans can be constructed that would have only be available via an accountant or lending institution, 20 years ago.

Of course, how you decide as a buyer or seller to ultimately close a deal, will depend on many factors, this may be just one of the more important aspects. How well you know each other, credit ratings, and the dollar value of the mortgage will also affect your decision.

Regardless of the final decision, the opportunity exists to explore other avenue other than the traditional mortgage lending institutions, or mortgage companies. And, sometimes, you never know, the deal from the seller financed mortgage may open more doors than just a mortgage for homeownership!

Home Equity Loans

Home equity loans are loans that are issued out to people in need of finance, against the security of their residential houses. In this kind of loans, the houses of the borrowers are kept as collateral against the sum borrowed by them. Usually, equity home loans are borrowed by individuals who are in desperate need of money, but have no means to repay them. Individuals in need of money have to keep their home as security against the sum that is lent by them.

Home equity loans, in recent times has emerged out as the main source of finance to people who are in desperate need of cash. More and more of individuals are increasingly resorting to home equity loans for their financial needs, the main reason being the collateral and security factor. Usually, to take up a loan of such huge amount, people have to sell off their assets and dispose of their belongings to raise the finance, for their needs. But, the one standing character of home equity loan is the fact that, the borrower needs not to submit extra collateral except the house against which he is getting the loan, like he needs to do for getting any other loan credited in his account. Also equity home loans are really beneficial and affordable since the interest that accrues, actually accrues on the amount that the borrower has drawn till that time, or while repayment of the loan, the borrower needs to pay the interest only on the amount that is yet to be repaid. All these enticing factors are drawing more and more number of individuals, looking for a loan that involves easy repayment terms.

The best part of home equity loans is that of revolving credit, once the amount of loan that the lender will lend to the borrower has been fixed by the lender, calculating on the value of the home against which loan is sanctioned, the borrower needs not to borrow the entire amount at the same time but can actually draw according to his needs, and pay the interest only on the amount that he has drawn till that time and not the entire amount of loan that has been sanctioned. The lenders to attract more and more borrowers also give the borrowers many schemes, which make the repayment of the loan all the more easy. The fact that borrower needs not give any other collateral, or pay any extra interest makes the entire thing even more easy for the borrower.

Deals on foreclosures

You recognize that auctions are about bidding to own something. Did you know that auction foreclosures can actually save you up to $100,000 on the sale. This can result in a like amount of profit on a resale of the unit. You must use the funds available to complete the sale if you win the auction.

It is not simple to find great bargains at the local court house. Not only do you need cash to have the required funds to pay for the property, you must know how to use your research results. Do your in advance homework to get the perfect deal. Obtain the original value of a subject home in order to set your bidding maximum. If you find a home's market value is $250,000 and needs repairs of $30,000 to get it ready for use, a winning bid of $150,000 will produce substantive equity in the property. The right selection and funds will produce net profit.

Do careful research on the belongings. Check with the surrounding area of the foreclosure home. Look for current market wants. Confirm whether it is located within town limtis or exterior. Is it in a manufacturing area' is there room for later development' how are the utilities' altogether these factors affect the commercial value. Foreclosure listings give you this information to help you make decisions. All the imperiative information is included. Even if many of your questions are not answered, it is the perfect place to begin.

To realistically win an auction, you need all your information and a process. The market value along with other details will help you set a maximum cost to bid. Actual bidding cost is not as important as the difference between it and the market price. Your research will determine the maximum price, which should always be below the market value less any expenses required for the property less a safety factor for figuring errors or market changes. One way would be to always stay 15-20% below commercial value. Never transcend the maximum you have preset, it can lead to unexpected losses and that is not the reason you are in the foreclosure marketplace.

There are no short cuts for winning foreclosure auctions. Your results and accumulated information will help, but there are always additional factors beyond your control. You will get ahead some and lose some as long as you have persistence to stay on. With the possible returns of foreclosure auctions, it is worth the try. To learn more on foreclosure auctions, things that a short article cannot cover, you should get a book on the topic.

Visit Information About Foreclosure for more information and helpful resources.

A new loan after foreclosure

You john still get approved for a mortgage following a foreclosure. The mishap is that with poor credit, you will not be eligible for low finance rates. You have to search for the right lender, work on improving your credit and make an agreement your terms. This ad will give you selective information on finding a new home loan.

Sub prime lenders

Sub prime lenders are put-upon by people with low credit scores of 650 or lower berth. However, even traditional lenders could have programs for sub prime lending and can use their own formulas for adding fees and rates on sub prime credit.

With regretful credit, you have to be more haunting to get a better deal. You must store around and ask why and how they calculated numbers for a prospective lending. Browse around and get quotes from mortgage brokers who deal with respective lenders. Also divvy up with individual loan officers as well as brokers.

If you provide true data regarding your situation, you should be able to get an answer on your quote without the loaner accessing your credit report and further lowering your credit score.

Improving your credit history

Prior to applying for whatsoever loan, you should verify your credit report for accuracy. Attaching a note of explanation of your foreclosure with the application may win over the lender that you are still a good credit risk. The letter should be detailed and give all pertinent circumstances of how your situation came about, what you did to resolve the situation, and what happened that kept you from getting it resolved. If you can make the lenders understand your situation, you have a better chance of them giving you credit.

A foreclosure whitethorn drastically drop your credit score immediately, but after one year you could be back up around 500 which can reduce loan rates by 2 % points. After two years you could be back up to over 600 and getting secretive to cheeseparing prime rates.

Negotiating home loan agreements

You can make an agreement with the lender to get the terms you want. You can generally wage points up front to qualify for lower finance rates over the term of the loan. Finalizing costs and fees can also be negotiated by buying more upfront points. Eliminating early on payment fees would be wise if you plan on refinancing in a few years to get a take down rate.

Visit Information About Foreclosure for more information and helpful resources.

Disadvantages of buying pre-foreclosure

You are mindful of the advantages from acquiring a pre-foreclosure rest home. You can puzzle adjustable agreements, buy at up to 40% below the homes market value, have adequate time to research the property, have a lower down payment, and so on. These are very alluring advantages, but remember that there are also disadvantages in acquiring a pre-forclosure home.

It is up to each person to determine which foreclosure method (pre-foreclosure, auction or reo) is the best procedure for them.

The main disfavor with pre-foreclosure is trying to get into contact by the homeowners. Homeowners browsing at foreclosure obviously have had some negative events happen in their lives that created them get behind in payments. They get in inconvenience. They don't want to bargain with someone they never heard of before, don't trust, and don't think anything they have to say either. Contacting them could aid them to deal with their problems or drive them beyond into denial. Your goal is to build contact with them.

Most foreclosure buyers will send mail to the homeowner as their procedure of contact. This is not a extremely friendly way to accomplish it. It is a lot better to call the foreclosure homeowner in somebody. A phone contact leaves a better impression and you can show your sincerity in purchasing the home pre-foreclosure. You must be courteous and calm to show them you are not just in it for the money, but desire to help them also. They want their house to go to someone nice instead of someone bad-mannered.

A second major disadvantage in buying pre-foreclosure is dealing with other liens on the grounds. You don't know how many more loans the homeowner has with the home as confirmatory. Some purchases are made up with loans from multiple lenders to purchase the property and additional ones for home betterment. There is a good deal legal work involved if there are numerous loans on the property.

The legal assignments can cause unforeseen problems in a foreclosure. Make trusted you do a thorough search on the home including the deed, loan information, out of sight liens, etc. You will want professional help oneself for this. This gives the third base disadvantage for purchasing pre-foreclosure. The paperwork tush be exhaustive and pricy to research.

The only asset is that, even with the above disadvantages, the return on purchasing pre-foreclosure can offset the costs and problems encountered. You must workplace to nonplus the rewards. There is investigating to do and you must understand the complete process of taking pre-foreclosure. I advocate that you buy a book on the subject field. It is deserving your time to read to get the results you hope.


Be sure to visit Information About Foreclosure for more information and helpful resources.

How to Use a Mortgage Calculator to Determine What You Can Afford

How a Mortgage Calculator Can Help You
Taking out a mortgage can be a daunting task. Even if you are very good with finances, it can be difficult to figure out what kind of burden a home loan will create on your lifestyle.

You may be considering buying a new home and are wondering what price range you'll be able to afford without giving up the occasional movie or dinner out. Or you may be thinking of taking out a second mortgage on your current home and want to know how much more you'll have to pay. Either way, a mortgage calculator is an invaluable tool to help you plan your finances.

What Factors does a Mortgage Calculator Consider?
The amount you need to pay on a mortgage is difficult to calculate because of the large number of factors involved. A basic mortgage calculator includes the total amount of the home loan, the interest rate, and the number of years over which the loan is spread.

More robust mortgage calculators include more complex factors such as the amount that you can put down on the loan (if any) and additional considerations that you will need to work into your financial plans, like the property taxes and insurance premiums you would have to pay on your new home.

Some calculators will also help you to find information that you might not know ahead of time, such as the mortgage rate that you can expect to receive based on your credit rating, mortgage type, and federal interest rate levels.

What Kinds of Mortgage Calculators Are Available?
There are a number of different ways to process information about a home loan. No matter what question you have, there is a mortgage calculator that can help you. Here are just a few examples of common mortgage calculators that can be found online.

* Monthly Payment Calculator - This kind of mortgage payment calculator breaks down the amount of a home loan into expected monthly payments based on the loan total, term, and interest rate.

* Salary Calculator - If you want to know what kind of salary you'd need to earn to afford your dream home, this kind of mortgage calculator is for you. A salary calculator uses the standard rule of thumb used by many lenders that says a salary should be 36% higher than the combined total of all debts including home loans, car payments, etc.

* Debt Calculator - This kind of mortgage calculator is the flip side of the salary calculator. It determines the size of home loan you can comfortably afford, based on your current salary and your debt levels before your new loan.

* Refinancing Calculator - This mortgage calculator is designed to help people who are considering taking out a new mortgage to refinance their current home loan. Use it to find out if refinancing will really save you money.

These are just a few of the free online calculators that are available to help you make an informed and responsible decision about getting a new home loan.

Visit Mortgage Calculator Facts for more information.

How to choose the right mortgage calculator for your needs

To start with, a simple mortgage calculator is useful. They let you input the amount of the principal you will be borrowing, the current interest rate, and the number of years to pay off the loan. These calculate mortgage repayments as a fixed amount over a fixed time with a fixed interest rate.

If you want to work out how much you can afford, based on your current standard of living and income, a more complex mortgage calculator is useful. It takes into account other monthly expenses. The sort of mortgage calculator that works out how much you can borrow will use similar information to give you a rough estimate of what a bank or mortgage lender will conceivably offer you.

Other sorts of mortgage calculators can be used if you are considering refinancing your current home loan, or wish to consolidate your current loans.

If you are currently in debt with personal loans, for example, and want a home loan, you may need to determine how long it will take you to pay off your current debt before going into more debt with a mortgage. A debt payoff goal calculator can help you work out a plan for doing this.

If you are looking at consolidating loans or refinancing, there are simple mortgage refinancing calculators that can help you decide whether you should refinance your current mortgage. These take numerous factors into consideration and determine whether you will be better off in the long term. You can also use a more complex consolidation and refinancing calculator, which is useful in determining whether or not it is in your best interest to consolidate your loans at the current time.

There are many different mortgage calculators available for use on the internet. Your first stop for a mortgage calculator will be at your bank's or financial institution's website. If you believe that you are not getting the best deal from your current mortgage provider, however, it would pay to visit some other websites for more information.

It's also important to consider the current interest rates the banks are currently lending for mortgages and home loans, and the refinancing packages they offer. You really need to consider your individual needs when choosing a mortgage calculator.

First, try a simple mortgage calculator. Then if you want, a more complex mortgage calculator can also tell you how much interest you will be paying off in the long term. These mortgage calculators are particularly handy when working out different payment schemes.

You may decide to make an extra lump sum payment once a year, or simply want to pay a few extra dollars a week off your mortgage. These mortgage calculators can tell you how much interest you will be saving and how many years you will reduce your loan by in making these extra repayments.

If you've done your home loan research and have looked into a number of different loan plans, it's helpful to be able to compare them yourself to make a more informed judgement.

However, unless you find a very sophisticated mortgage calculator, it probably won't allow you to take into consideration things like fixed and variable interest rates.

A good amortization calculator breaks down exactly how much interest and how much principle you will be paying off your loan each year or month based on your current repayment scheme.


Be sure to visit Mortgage Calculator Facts for more information and helpful resources.

How to Compare Rates With a Mortgage Calculator

Choosing the type of mortgage to finance your home purchase can be an overwhelming experience. Using a mortgage calculator can help. There are so many different kinds of loans available to consumers that it becomes difficult to understand how each of them work. You have to know which will save you money versus the options that will end up costing you.

A mortgage calculator is a useful tool for testing the different scenarios to find the home loan that is the best choice for your particular budget needs and repayment intentions. Better yet, using a mortgage calculator is fast and free.

The two basic options in regards to the interest associated with a home loan are the fixed rate and the adjustable rate mortgages. A fixed rate means the interest rate does not go up nor down over the duration of the loan. It offers a consistent payment amount and is considered less risky because of the payment stability. You know exactly how much you are required to pay every single month for as long as you hold the loan.

You can use a mortgage calculator to determine what your monthly payment would be based on the total amount of money financed and the length of time the mortgage is taken out for.

An adjustable rate mortgage (ARM) is a little riskier, because the interest rate can fluctuate in relation to an index. The changes in the interest rate can cause your payment to go up or down.

You won't always know what your monthly payment amount is, but you can use a mortgage calculator to find out the annual percentage rate of your ARM loan by entering the loan amount, current interest rate, index value, margin, points, and number of years you have taken the loan out for.

Besides determining the monthly payment amount, a mortgage calculator can be used to determine how much money may be saved by making an additional payment on the loan. Another alternative to review is the effects of sending more than the amount of the standard monthly payment each month. Surprisingly small additional payments in the early years of your loan can cut off tens of thousands of dollars of interest and shorten the term by decades.

For first time homebuyers, a mortgage calculator can be used to determine amount of money you can afford to borrow to purchase a home. This is based on the amount of money you earn and the extent of your existing debt.

You can even find out in advance how much of a tax deduction your mortgage should provide for you by filling in the fields of an online mortgage calculator.

Most mortgage company web sites offer free online mortgage calculators that you can use. Some sites even offer a handy comparison calculator to help you determine whether it is in your best interest to rent an apartment or buy a home based on your finances. If considering an interest-only home loan, you can use a comparison mortgage calculator to figure out what your monthly savings would be compared to a standard loan program on a similar loan.

Be sure to visit Mortgage Calculator Facts

Interest-only Home Mortgages Invest in Foreclosure

You have seen the glitzy ads on TV talking about a "new kind of home mortgage" that can "get you into the house of your dreams". Sounds too good to be true? It is. These are interest-only home mortgages and one of the fastest ways to find yourself in foreclosure.

An interest-only home mortgage is a particular type of home mortgage where for the first year, or few years, all you are required to pay is interest. Of course, you are always welcome to pay on principal. The problem is that after the first period of time, your payments double or triple. When you can't pay, you lose your house.

These home mortgages can be either fixed or adjustable rate. An adjustable rate interest-only home mortgage offers all of the down sides to an adjustable rate home mortgage, plus the problems of an interest-only home mortgage. If you can only get this type of loan, look into a pup tent. These home mortgages have horrible rates of foreclosures.

Interest-only loans are sold with a list of assumptions that are at best half-truths, better known as lies. Here they are:

Lie 1: You will earn substantially more money next year.
If they could really tell the future, they would be in the stock market, not offering you a home mortgage. No one can tell you how much you will make next year, unless you are in the military. Even then you know that your raise won't be substantial. During hard markets, PhD's have had to flip hamburgers. Don't assume that that law degree will lead to immediate riches.

Lie 2: With a lower payment, you will pay more on principal.
Yeah, right. If you are having a hard enough time making ends meet now, how do they think that you are going to have an extra $1000 each month? Something will come up, and you'll end up making your payments, but not much over.

Lie 3: You deserve a bigger house.
Okay, this is probably true, but saints often live in shacks. Don't drive yourself into bankruptcy for an extra 500 square feet.

Lie 4: You will probably refinance anyway.
Most loans have a penalty if you refinance them within the first two years, and many home mortgage companies don't want to refinance that quickly, either. So you will likely be stuck with a huge payment before you are eligible to refinance.

So, with all this negativity, is there ever a time for an interest-only home mortgage? Yes, but a very few.

If you have a trust fund that is coming to you before you have to start paying on principal, and you know that you will be able to use that money on housing, then it may be a good way to tide you over. If you are a very savvy investor with bonds that will mature soon, then you probably aren't reading this. If this is a fix-it-and-flip-it scheme that you will live in AND the home has appraised for significantly more than the loan amount, then you probably will be able to refinance after work has been done. Outside of circumstances like these, stay away from an interest-only home mortgage.

Be sure to visit this website.
http://www.homemortgage-tips.info

Beware of the Adjustable Rate Home Mortgage

In today's housing market, qualifying for a home mortgage for a house that is decent can be hard. In some areas, prices have more than doubled in three years. That leaves many buyers scrambling for financing. One option is the adjustable rate home mortgage, or ARM.

An ARM can get you into a house buy offering a lower interest rate, and thus initial payment, than other types of home mortgages. Since the amount that you can borrow is based on the size of your payment, an ARM may get you into a better house. But beware, not all ARMs are the same.

The simplest ARM is a home mortgage whose rate is readjusted periodically, much like your credit card. If rates are falling, this means that your payments will fall, too. However, if mortgage rates rise, you could be looking at a very large monthly payment. This is the home mortgage to be most cautious of. Often, interest rates go high at the same time as unemployment. So you could be looking at no job and a very high home mortgage payment. This is a classic set-up for foreclosure. So avoid this loan, if at all possible.

The next type of ARM called "reward" home mortgage. It starts out at an interest rate, and then, if you make all your payments on time for a certain period, your interest rate falls! If you have a very good home mortgage broker, you may be able to get this home mortgage. Ask about it.

A less extreme version of the first ARM is the ARM that is readjusted only once or twice. Normally this is at 3 years. This is because that is when your home mortgage company plans on selling your loan. This loan is riskier than a fixed rate home mortgage, but may allow you to get into a better house. Also, since it is only readjusted a few times, you have a much better chance of not getting stuck with an enormous payment. This loan is often offered at times when the home mortgage companies think that rates are too low, so they are betting that rates will increase. Just as you are betting that mortgage rates will go down. But, it is a hedged bet.

Finally, there is the ARM that allows you to decide when to change rates. Normally you can only do this once. This is really useful if you are young or have other circumstances where your credit rating will improve. By watching mortgage rates carefully, you have a good chance at lowering your payments. But read the fine print carefully. You are probably paying in some other way for this luxury. You can't be too skeptical.

An adjustable rate home mortgage can be many things, so shop carefully. Most likely, the home mortgage for you is out there. You just have to find it. Your home mortgage may outlast your husband, so spend a few nights considering the proposal. After all, a home mortgage won't cry if you tell it "no". But that is under the heading "Why home mortgages are better than men". Good luck.

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http://www.homemortgage-tips.info

Hooray for Fixed Rate Home Mortgages

This traditional type of home mortgage can be the best deal for you. Since you know your interest rate before you sign, this type of home mortgage gives you the assurance of a fixed monthly payment. Your amortization schedule, a page that shows you how fast your equity builds up, will clearly tell you how fast you will own your home. But this is only the beginning.

Like everything else today, a fixed rate home mortgage comes with different varies and options.

The first, and most obvious, is the length of the loan. Loans can be anywhere from 10 to 30, or even 40, years in length. The standard home mortgage is usually either 15 or 30 years. When home mortgages began, they were all 30 years, but times have changed. If you, like most of us, are not swimming in cash, a 10 year home mortgage will be hard to come by.

Also, stay far away from the 40 year home mortgage your broker is trying to push. When you look at the fine print, only $25 a month may be going to principle! If this is the only mortgage you can get, look for a cheaper house and fix it up. But that is a different story. The best idea on length is to go for the shortest possible. Why? Because for the first third of a home mortgage, you are paying almost all interest. So even if you squeeze an extra $100 out of your budget, equity will probably still build up faster with a shorter loan.
Here's the simple test:

1. Write down how much you will pay each month toward your home mortgage (don't be optimistic, if anything lowball). Example: $600 a month
2. Write down the total payment, including insurance, taxes and homeowner's association dues, of the home mortgages you are considering. Example: $625 a month
3. Write down how much is going every month towards principal for the first year (your loan officer will be able to tell you this). In this example: $80 a month
4. Subtract line 2 from line 1 (it will likely be negative). Example: $600 - $625 = -$25
5. If Step 4 was positive, recheck line 1. If it is still positive, add it to line 3. If it is negative, leave line 3. Example: $80 a month
6. Cry.

Do this for each home mortgage you are considering. This will give you a good idea of whether or not you actually will pay the loans off early. If none of the loans offer a significant difference, go with the shortest. You will own your house that much sooner.

Finally, your broker will probably talk to you about options for your loans like "points". Don't let the jargon fool you. There are only three numbers you care about: how much you have to bring to closing, how much you have to pay every month and how much of that goes toward your principal. Keep your eye on the ball, and you will be bragging to your friends about your great home mortgage.

Be sure to visit this website.
http://www.homemortgage-tips.info