Mortgage Loans for First Time Buyers

For first-time home buyers, home loans give a very great deal of help. People usually seek financial help by applying mortgage loans. A loan is any amount of money that is borrowed and is used to finance expenditure. Mortgage loans are used to guarantee loans that will be used for financing a purchase of real estate or real property such as a house and a lot.

Just like other types of loans, mortgages are guaranteed with the use of a document that serves as evidence for the existence of a deal between the borrower and lender. Loans are usually attached with collateral such as the property itself or other properties that can guarantee the payment of the debt. In everyday life, people usually interchangeably use the terms mortgage and mortgage loan. They are technically different things but in real life, they mean almost just the same.

Financial institutions such as a bank are the usual places to get a mortgage loan. Each bank has its own loan features such as size of the loan, maturity period, interest rates, and method of payment. All of these variables should be well considered before applying for a loan. There are different types of mortgage loans. Each type of loan has its own features: high or low interest rates, short or long term payment schemes, etc.

The first type of housing loan is the Fixed Rate Mortgage or FRM. This is the most basic mortgage type in the market. As its name implies, its interest rate is at a fixed level all through out the duration of the loan’s payment period. Its payment term is usually at a 15 or 30 year period. Payment rates for the principal value and interest should not change over the life of a fixed rate mortgage loan.

The second type of mortgage loan is the Adjustable Rate Mortgage or ARM. In ARMs, the interest rate is mostly fixed for a period of time, after which it will slightly go up or down depending on some market index either in an annual or monthly basis. Since the risk is given to the borrower instead of the lender, adjustable rate mortgages are usually given by financial institutions and intermediaries as compared to FRMs. ARM interest rates are usually fixed within the first 3, 5, or 7 years of the payment term, and then after that the interest may go up or down within a two percent cap.

Family Florida Tourism

Has your family chosen wherethey want to go on your summer vacation? You are not alone, most families have not yet decided where they want to go. It can be a quite time consuming activity to discover that perfect vacation plan, so check out the options for your Florida tourism. You will discover various options and it may not be an easy decision!

However, if you are careful and appreciate the time to do some planning, it will make your summer vacation fun and one of those “family events” that you will treasure forever. The most frequent mistake people experience is first selecting a “destination.” The ideal vacations begin when you first select “what you want to do”! Do you want to go hiking, tanning on a beach, playing and relaxing at a pool, or touring cultural or heritage locations? By deciding “what you want to do” first, you are off to the best start of selecting that perfect family Florida vacation destination!

Now that you know “what you want to do” – you can sift through the various tourism destination locations and discover those appealing attractions that you want to go see or do. By taking a short time planning, you can also discover those destinations that have a number of attractions that are of interest to both you and your inclusive family. Online travel guides are useful that can help you choose comprehensive information about destinations that are more comprehensive than a short attraction name and address. Once you know “what” you want to do and “where” you want to go, a professional high quality online free state travel guides will provide you a quality article detailing each attraction to assist you making an educated decision about what you want to do and where you want to go.

Here are 3 Florida vacation locations that you may want to consider:

Idea #1: Key West Tandem Parasailing – Key West, Florida. Have you ever wanted to float high above the water? If you wanted to share the experience with someone special then tandem parasailing is a great way to see Key West. Parasailing is safe for all ages and can be done alone or with a buddy.

Idea #2: Top Attractions in Boca Raton for Your Honeymoon. Each couple has different plans for their honeymoon. They may choose to relax and recover from the hectic times leading up to their wedding. They may want to get out and do as much as possible so that they make new memories and try new things. Whatever their choice, every couple is sure to enjoy a Boca Raton honeymoon.

Idea #3: Tallahassee Antique Car Museum Has a Fine Selection of Antique Cars and Vehicles from a By-Gone Era. A visit to Tallahassee would not be complete without stopping by the Tallahassee Antique Car Museum to view one of the finest rare car collections in the Southeast. This 100,000 square foot museum has over 130 cars ranging from the 1860 hearse the carried President Lincoln’s body to some of the newer, rare vehicles of today.

As you can see, you have a significant choice of options available to you when it comes to selecting that perfect family Florida travel guide. Take advantage of your chance to plan carefully what you want to do and where you want to go. Select a professional travel guide to help you find those perfect free travel guides videos. And you will know that you will experience a family vacation with a lifetime of memories.

Want to buy a house? What are some of the financing options?

Fortunately for buyers, there are a variety of mortgages to choose from. It is in your best interest to investigate each of them to determine which is the best for your situation. You probably won’t qualify for all of them. In fact, you may only qualify for one. But if you do qualify for more than one, you may save yourself money (and worry) in the long run if you do your homework before signing on the dotted line.

* Fixed-Rate Mortgages

* Adjustable-Rate Mortgages

* The Convertible ARM

* FHA and VA Loan

Fixed Rate Mortgages

Consider a fixed rate mortgage if either of the following describes you:

* You plan on living in your new home for many years, and/or
* You are not a risk-taker and prefer the stability of knowing how much your payment will be each month.

Since most home loans are for a period of 30 years, if you want a payment you can count on for that long of a period of time, a fixed rate mortgage may be what works best for you. Once your loan amount and interest rate are calculated and locked in, a fixed rate mortgage will guarantee that you will have the same payment over the life of the loan. Making extra payments to principal will allow you to pay your loan off sooner.

This may not always be the best choice, however. If interest rates are very high at the time you take out your loan, with a fixed rate mortgage you’ll be stuck with that high interest for the life of the loan (unless you choose to refinance). Conversely, if interest rates are very low, you’ll come out the winner with interest rates that will stay low no matter how high interest rates go in the future.

The following are the advantages and disadvantages of the varying lengths and terms of fixed-rate mortgages:

15-Year Fixed-Rate:
o Pay off the loan in half the time of a 30-year loan.
o Equity builds up more quickly than in a 30-year loan.
o Payments are higher (which may be a problem if you lose your job or become unable to work).

20-Year Fixed-Rate:
o Pay off the loan in 2/3 the time of a 30-year loan.
o The overall interest paid is considerably less than for a 30-year loan.

30-Year Fixed-Rate:
o The most common choice, especially for first-time homebuyers, as it’s the easiest of the fixed-rate loans to qualify for.
o Monthly payments are lower than for 15-year and 20-year loans. This can prove especially helpful if you do not have a lot of “padding” between the amount you can afford to spend and the monthly payment for your desired property.
o More desirable if you plan on staying in the same home for years, since equity builds more slowly than for shorter-term loans.
o For income tax purposes, this term provides the maximum interest deduction.

Adjustable-Rate Mortgages (ARMs)

If you are more comfortable in taking a risk with your money or if interest rates are very high at the time you take out your loan, an adjustable-rate mortgage (ARM) may be the solution for you. You might also choose this type of loan if your planned ownership of the property is short-term or if you expect your income to increase to cover any potential rise in the interest rate.

Generally, the interest rate when you take out your loan will be lower than a fixed-rate mortgage. Please note that this is true initially, not necessarily long-term.

Since an ARM rate rises and falls depending on the prevailing interest rate, your mortgage payment will rise and fall accordingly. If your income is not sufficient to cover the highest possible payments, then this option is not for you. On the positive side, the lower initial payments will allow you to qualify for a larger loan than if you choose a fixed-rate. The downside is that your payments will increase if/when the rates go up.

Typically, ARM interest rates are tied to a specific financial index (such as Certificate of Deposit index, Treasury or T-Bill rate, Cost of Funds-Indexed Arms or COFi, or LIBOR [London Interbank Offered Rate]) and your payment will be based on the index your lender uses plus a margin, generally of two to three points. Get the formula used by your lender in writing and make sure you understand what it means.

Fortunately, the amount an ARM can increase is limited. There are “caps” on how much your lender can increase your rate, both for a period of one year and for the life of the loan. Plan ahead, and have your lender calculate what the maximum payment would be if your rate went to the highest amount allowed by the cap for your particular mortgage. If you are not confident you’ll be able to pay that amount on a monthly basis, perhaps you should reconsider this type of loan.

Convertible ARMs

If neither the fixed-rate or the adjustable-rate mortgage seems like the best option, perhaps the convertible ARM will be right for you. This alternative combines the initial advantage of an ARM with a fixed rate after a predetermined number of years. Obviously, this type of mortgage has more advantages when the initial interest rate is low and the future rate is not guaranteed.

Government Loans

Another mortgage option available to some people is a government loan, providing that you meet the qualifications for these loans.
o VA Loans: Veterans may qualify for a loan from the Veterans Administration. There is a limit on the amount you can borrow, so this option works best for those buying a lower priced home.

o FHA Loans: The Federal Housing Association offers loans to lower-income Americans. Look for the phrase “FHA approved” when looking at ads for homes.

Discover Homes for sale in Orlando and Dr. Phillips homes for sale. Also read about how to buy a vacation home.

There is more to South Florida than Miami Beach. So time to enjoy a Florida Keys Vacation Package. There is no way not to be awed when visiting the Florida Keys. The Keys are like nowhere else on earth in their beauty, peculiarity, their congeniality and their personality. It seems as though my body and mind instantly relax as I drive through Key Largo; just knowing I am going further down into the heaven called the Keys.

Route 1 is the only road from Key Largo to Key West and it is awesome. It passes through small villages, small hummocks of mangrove trees, intermixed with tiny beaches.

Fisherman, in shorts, and hair louse in their beards cast for mangrove snapper and yellowtail, while boats with flat bottoms and guides work their way through the flats in search of the elusive bonefish. Hair louse abound down here, and the locals like it that way.

Everywhere, the water is a different and beautiful color: green, turquoise, sapphire, and beige. Always crystal clear, cleaned by the gulf stream.

On the left is the Atlantic Ocean, shallow and various shades of blue; on the right is Florida Bay and then the Gulf of Mexico; murky yet beautiful in shades of green, beige and tan. Islands dot the landscape in the Gulf, as do boats seeking pleasure or fish, or both.

The drive to Key West could not ever be described as bad. It is beautiful; something new around every bend or over every bridge, especially the seven-mile bridge.

Pelicans, ungainly yet graceful, glide beside your car as you speed along the highway. Islamorada and Marathon are the only places that slow traffic down on the way to Key West.

Just north of Marathon is a place where you can swim with the dolphins at the Dolphin Research Center. If you look closely, you may just be able to spot Jimmy Buffet’s home on the end of Shark Key. Be sure to have a Margarita and Cheeseburger on him!

Key West finally emerges. It is a bustling place with lots of people, lots of shops and lots of restaurants. Take a deep breath and plunge in: get some conch fritters and have a beer at the Hog’s Breath. Just don’t forget to worship the sunset on Mallory Square before relaxing in the salty breeze for the night!

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