Choices That Will Affect your Home Loan In Phoenix.
If you intend on buying real estate in the Phoenix Valley and are not paying cash for it you will have to decide how you would like to finance your real estate purchase. Here are several different ways to finance your real estate purchase in the Phoenix Valley
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Mortgage term. Conventional home loans are generally available at 15, 20, or 30 year terms. The longer the loan term, the lower the monthly mortgage payment if the same amount is borrowed. However in Phoenix (and everywhere else), you pay more interest overall if you borrow for a longer term.
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Fixed or adjustable interest rates. A fixed rate home loan allows you to lock in a low rate for as long as you hold the mortgage and is a good idea now that interest rates are low. An adjustable rate mortgage is designed to rise and fall with interest rates and is usually a better home loan choice when interest rates are high, but expected to come down.
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Balloon mortgages. These home loans usually have very low interest only payments for a short period of time...like three to ten years. The entire principal amount is due at the end of the term (you can re-finance the loan before it expires).
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Government backed loans. Right now FHA loans are very popular for first time home buyers. Va loans are another good choice if you qualify. These loans can offer special terms including lower down payments or reduced interest rates to home buyers that qualify.
If you would like to figure out what your potential monthly payments will be you can input different loan amounts, loan rates, and loan terms on my mortgage calculator. Simply go back to my home page, select "Buying", and then select "Mortgage Calculator".
Date: Friday, April, 4th 2008 @ 09:30:27 AMViews: 119
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