I am not sure which one would the best choice.

3 years ago variable loans eg. 3/1 ARMs and 5/1 ARMS had a significantly lower rate than 30 year fixed rates. If you were going to stay in a home for 5 years or less, a 30 year mortgage was very expensive compared to a 5/1 ARM.

We are now in an interesting period where 30 year rates and adjustable rates are about the same, and in some cases, where the adjustable products are more expensive than the 30 year fixed.

The simple answer therefore (not knowing your credit situation and other factors), is go with a 30 year fixed. The rate is no higher than the adjustables and I personally believe mortgage rates are going to hit record highs in the next 4 years.

The only caveat to the above is if your credit score is below 620 and above 580. You will then qualify for a sub-prime loan. The rates on these loans are higher because of the lower credit score. In this case, the 2/28 ARM can be much cheaper than the 30 year fixed. This is a good loan if you don’t have great credit, but want to buy a home.

The intent is that you will refinance it sometime in the next two years when your credit is better into a lower cost, 30 year mortgage.

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A home mortgage with one larger payment at some point is called a balloon loan. This type of mortgage is usually on a second mortgage. With these mortgage loans, most people will sell or refinance before the balloon payment is due. Watch this Expert Real Estate Tips video about these special mortgages and find out if a balloon loan is right for you.

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I am beginning my 4th year of a 30 year term home loan at the rate of 6.125%. With interest rates dropping, is it worth the time and expense to refinance to get a newer and better interest rate? If so, what rate would be considered "worth it"?

Right now the lowest you can get without paying points is maybe 5.625%. The closing costs on loans are too high to see any benefit to that. 6.125% is very good (consider rates were 14% back in the early 1980s).

Rule of thumb is that you should lower your rate at least 1.5% to make refinancing worthwhile. Preferrably 2% or more.

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Is a 30 year fixed rate mortgage loan right for you? What is the advantage of a 30 year fixed rate mortgage? 30 year fixed rate mortgages offer security even if you plan to sell or refinance your home after a few years. Watch this Expert Real Estate Tips segment and learn all the advantages of a 30 year fixed rate mortgage loan.

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Hi All

what is the best rate for the home mortgage loan? and I am putting almost 50% down payment.
One broker offered me loan at , 5% at 0 Point for 30Yr fixed. Do you think I should contact more brokers? Do you think I can get better rate if I contact more broker?

Mihir

15 yr is 4.45%

30 year is about 5%

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I Check with the bank for the home loans,they told me 7.5% as floating & 7.25% as fixed,I need to know what is the difference between these two terms?

If i take RS.10,00,000 as home loan & the loan period will be 5 years,so with the interest rate 7.5%,what will be the EMI Per month need to pay to bank.

Please explain.

Thanks,

Ibrahim

Fixed means the rate stays the same throughout the term of 5 years
Floating means it will change with the market. Could be 7 one year and 10 the next. Take the fixed.

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Can people even get home loans right now? What is the current rate? Where do you find such information?

PJ it depends on where you are and what bank/lender you are using. There’s no "one rate fits all" situation. Of course you can still get mortgages but they have to be done the right way which is in my opinion the only way there should have ever been.

You need to be able to service the debt as in be gainfully employed for at least a year. Come up with a minimum of 5% down and have a healthy credit score/report minimum of about 650-680 depending on the lender.

Take a look at the finance/rate section of msn.com or just visit the website of your local bank and look up their mortgage rates.

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or if you know the rate of the VA home loan

With no points, no origination, you should be able to get 6.5% The state you buy in should have no effect on the rate. I just locked a VA loan on Friday at 6.5% 0 + 0, that’s how I knew the rate.

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I was forced to take one of the high interest home "junk" loans and am now paying a high monthly bill.I have looked at some of the online Loan modification sites but don’t know if I can trust them.I would like to do this myself if possible.

Did they use a gun or knife to force you to sign that contract?

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A short video message from Ed Bisquera, Mortgage Planning Consultant for Mortgage Express in the Vancouver, Washington and Portland, Oregon area. This video is for his profile at Zillow.com to prospective loan clients and reveals a personal message on how Ed will provide the best possible loan quote and closing costs fees with an accurate good faith estimate, when looking for a mortgage for purchasing a home or refinancing a current home mortgage loan.

Ed provides mortgage planning services in Washington and Oregon, specializing in First Time Home Buyers, Investors and others, with loans such as VA, FHA, 203k Streamline “Fixer Upper or Handyman Loans” made easy, conventional loans, from 30 year fixed to 15 year fixed, etc.

If you’re looking to finance a bank owned or foreclosed property, such as one you’d find on our sponsored Bus Tours (visit http://www.HomeBuyerBusTour.com for more info) or simply want to get a no-hassle, no obligation loan quote, call Ed Bisquera at (360) 597-8283 cell or (800) 862-0784 ext 21.

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