Having Mortgage Calculators Calculating The Best Loan Option

You need to use more than a mortgage calculator to find out which is the best plan for your needs. Here you have a quick guide to help you decide on the best plan for you.

The Different Types Of Mortgage Loan Options

So you have decided to purchase your own home and you need to find out which type of home loan is the best for you. There are basically three main types of mortgage loans available so let us have a look at them and try to find one that will best suit your requirements.

1. The Fixed Mortgage Loan.

30 year fixed rate: this loan is probably the most popular type of arrangement because it provides for low monthly repayments and is usually chosen by people who will stay in their home for a long time. One of the advantages is that you will have more money in your pocket each month. A disadvantage is that you will pay more for the loan in the end compared to shorter type loans.

15 year fixed rate: this loan allows you to pay your mortgage off in 15 years. You will save money in the long run. An advantage of this type of loan is that you pay half the interest of a 30 year loan. A disadvantage is that you will have to pay higher monthly repayments during the term of your loan.

Biweekly loan: this type of loan is generally done on a 30 year fixed rate plan. By paying every fortnight though, you pay extra payments every year and you generally find that you will pay off your loan in about 23 years. This loan also builds your equity in your home much faster. An advantage is that you pay your home off faster and you pay less interest. A disadvantage is that you have to pay every two weeks.

An Adjustable rate mortgage or (ARM): this loan is good because of the way in which it works on interest rates and they generally are lower at the start than a fixed rate home loan. This means you will pay less each month but you have to consider the disadvantage of paying higher interest if the rates go up.

An obvious advantage is that when the interest rate drops so do your repayments. Alternatively, a disadvantage is that if the interest rate rises so do your repayments.

2. Convertible loans:

Included in these options are Hybrid and convertible ARM type loans. One is an ARM that lets you convert to a fixed rate or a fixed rate home loan that you can covert to an ARM. This means that you have the option to change your mortgage loan after a few years if you wish. An advantage is having the ability to change between ARM and fixed rate. A disadvantage being that if interest rates are high you might not wish to convert.

Interest Only Loan: this type of loan is beneficial for those who work on commission or can get big bonuses so they only pay the interest on their loan and when they get their bulk income they can put it towards paying off the actual loan. An advantage is that you are able to secure a bigger loan amount. A disadvantage being that you have to pay in lump sums and when you only pay the interest then you are not paying anything off on your house loan.

Balloon loan: this type is a fixed rate loan with small monthly repayments that generally last about 7 years. Then you must pay the loan in one big lump sum or have the option to be able to refinance. An advantage for people who will want to sell their house before the balloon payment is due and also low interest rates. A disadvantage being that you have to pay a lump sum at the end of the loan term or refinance at usually a higher interest rate.

Reserve mortgage loan: this type of loan is ideal for equity rich seniors. It requires no monthly repayments. An advantage is that you will have more money in your pocket. A disadvantage is that the loan needs to pay if you sell your house and reduces equity for inheritors.

Buy down mortgage loan: there are two types involved here, a temporary and a permanent loan. They both work on points and lower interest rates. An advantage is lower repayments. A disadvantage is that you need to pay a higher down payment to lower interest rates.

3. The Special Mortgage:

FHA mortgage: for first time home buyers, people who have only a little down payment and credit problems. An advantage being a low down payment and repayments. A disadvantage is the cap on the loan and limited mortgage options.

Veteran Affairs Loan: this is only for people and widowers of the armed forces. An advantage is that there is no down payment necessary. A disadvantage is that it is not available for everyone and usually takes longer.

So, there are many types of loans available to you when you want to buy your own home. To find out which one will the most beneficial for your needs is to consult a financial professional and they will go through them with you one by one.

Bad Credit, New Home Loan Options

Not everyone has an exceptional credit history and high credit score, so for those with a less-than-perfect FICO score, there are still some bad credit new home loan options available for you. However, these kinds of loans are not offered on a silver platter. Loans like these need to be sought out and researched before they become available.

The best ways to find new home loan options that will suit your needs, you may have to do the necessary research on which banks and lending firms offer such options. They usually have special programs that they will feature on their websites that cater to the client with bad credit. It also helps to directly go to the bank or lending house and get their in-house assistance. Every bank and lending company has financial officers that will help you find a loan option that will fit your credit history and needs. With the economic crisis now, more banks and lending firms are more willing to look at more than your FICO score to determine whether or not you are eligible for a new home loan.

And if worse comes to worse and you find yourself running out of options, you may have to consider taking the extra effort in improving your FICO score. Your FICO score is basically a reflection of how responsible a debt payer you are. Give yourself at least 6 months to make good prompt payments of all your debts and you will find what a difference it makes in your credit score.

Loan Options for Your Manufactured Home Mortgage

There are a whole slew of options when it comes to getting a mortgage for a manufactured home. Deciding which options to choose can be somewhat daunting but careful consideration of all the possibilities can help the prospective homeowner find a mortgage that works best for them and their financial situation.

One of the first options to consider is the life of the loan. Manufactured home lenders offer a variety of loan terms including 15 years, 20 years, 30 years, and in some cases even 40 year loans. The important thing to remember with any loan is that the longer the payback term the more interest will be paid over the life of the loan. Shorter term loans may have higher payments but the savings on interest can be well worth the extra cost, if it fits into the budget.

Another option will be the type of mortgage and associated interest rate. The most common mortgage is the fixed rate mortgage. It has a fixed interest rate that remains the same over the life of the loan. This generally means that the monthly payments will remain fixed and not change over the life of the loan.

The other type of home loan is the adjustable rate mortgage or ARM. An ARM normally starts with a lower interest rate then a comparable fixed rate loan, but it the interest rate is designed to adjust at fixed periods depending on current market trends. This means the interest rate can go up or down, changing the monthly payments accordingly.

There is also the option of choosing what is called a hybrid loan. This type of loan has different payment options but the terms are fixed for certain periods of time. An example would be a 30 year fixed rate loan that allows the borrower to pay interest only during the first ten years of the term and the remaining interest and principal over the last 20 years.

Another option to be wary of is any mortgage with a pre-payment penalty. This basically means if a loan that is paid off to soon there will be a payment penalty assessed. While not very common it is important to pay close attention to the terms of any loan and read all the accompanying paper work to ensure that you are not surprised by a pre-payment penalty.

Also less common is the option of the combo or piggyback manufactured home mortgage. This type of loan is actually two loans; a mortgage and a home equity loan used as a down payment option for borrowers who have less then the 20% needed for most down payments. This keeps the borrower from having to pay for mortgage insurance which can add a considerable amount to the monthly payment.

There are many loan options available for a manufactured home mortgage. It is a good idea to research all options available and make a decision that works best for you and your financial situation.

Tips on Business Credit Loan Options

Now that you’ve done all the grunt work –getting a dynamite product, finding your corner market, etc.– you’re ready to open your business, right? Wrong. You’ve got to be sure that you get your credit in order ASAP. The easiest way to do that is to get a loan from a trustworthy source.

Lenders: If you just so happen to be the favourite niece of a rich great aunt, then your money problems are virtually non-existent. For those who aren’t so endowed, it would be wise to consider approaching a government agency with macro loan options or a credit union before going to a commercial bank. You’ll get the help from a reliable source with substantially lower interest rates.

Necessity: The first thing you need to consider before approaching a lender is towards what is your money going. For beginning businesses, it’s best to invest your money in inventory and equipment. Especially when thinking of borrowing from a bank, you’ll want to make sure whatever money you get goes towards something that can replenish capital and earn you a profit so you can make payments on time and keep your credit clear.

Loan Programs: Once you’ve found the perfect lender, you’ll need to consider all the options they offer in terms of loan programs. For instance, if you’ve decided to go with a government backed agency, chances are you’ll receive a sizable loan with a markedly smaller interest rate than that of a commercial bank. You’ll also find that because these agencies are funded through federal reserves, their names have an added level of credibility –meaning if your business should go south for any reason, a commercial bank seeing your previous loan history will be more willing to offer you financial aid to get you started up again.

Don’t be alarmed by the prospect of owing money; it’s part and parcel when starting any huge venture. Just make sure that your business is set up to succeed so you can rake in the cash and pay off your debts in one fell swoop.