Types Of Christian Mortgage Loan
Types of Christian mortgage loans offered by lenders include many different choices versus the traditional 30 year fixed rate option due to the expansion of homeownership and the growth of the real estate market. Fixed rate mortgages in this day include 30 year, 15 year, bi-weekly and convertible mortgages. A 30 year fixed rate usually offers the lowest monthly payment. Some lenders offer additional fixed rate options with terms of 20, 25 and even 40 year terms. Of course the longer the term, the more interest the borrower pays. A 15 year fixed rate will have less interest and be paid off in half the time compared to a 30 year term, but the monthly payments are going to be higher.
A bi-weekly mortgage will cut off the interest tremendously on a fixed rate mortgage. Bi-weekly types of mortgage loans are set up as 30 year fixed loans but with half the payment made every two weeks. The interest for types of mortgage loan that are bi-weekly will shorten the term as much as 10 years. Bi-weekly payments will also build equity in the home much faster. Use a calculator online and figure the savings of a bi-weekly payment plan in both time and money. Every potential homeowner needs to make sure that the payment schedule is affordable. Foreclosure is far too common and only shows a lack of responsibility and planning that is vital to homeownership. It is important that potential homeowners face reality. "Examine me, O LORD, and prove me; try my reins and my heart" (Psalm 26:2). If they can't afford the payments, they have to look at other choices.
Premier mortgages, another option, offer the borrower both fixed and adjustable rates during the term. With a premier mortgage loan the initial interest rate starts out lower but will end up going up substantially usually after a seven-year period. With these types of mortgage loan, this could work out well for the homebuyer who plans to stay in their home for no more than seven years. Consider all options based upon time spent in a home. Check out these types of mortgage loans on the Internet.
Lender buy-down loans are additional options that guarantee an initial discounted rate. The interest rate on these types of mortgage loans will continue to go up each year until the fixed rate is reached after three years. Another type of a buy-down is a compressed buy-down. These types of mortgage loan, does the same thing as the lender buy-down but only the interest rate goes up every 6 months instead of every year. Convertible fixed rate options allow the homeowner to adjust their rate based upon a set amount of time. For these kinds, the homeowner has to pay a fee depending on the interest adjustment. A convertible adjustable rate will allow the homeowner to turn their adjustable rate into a fixed rate after a certain period of time.
A home loan mortgage in California can help the average person achieve his goal of becoming the owner of his own house or of moving up to the house of his dreams. For the renter, home ownership is a better way of managing his assets. For some people, their needs have expanded beyond the walls of their tiny houses and they want to trade up to something bigger. Yet very few of consumers have enough money in savings to pay cash for a house, making mortgages a necessity. Home loan mortgages in California help people finance their dream of becoming home owners.
To get the best rate on home loan mortgages in California, a borrower first must decide what type he wants. There are different types to consider. A fixed rate (FRM) conventional home loan mortgage in California maintains a steady rate of interest for the life of the loan. For a 30 year loan, the interest rate will remain the same for all 30 years of the mortgage. FRMs are attractive to many borrowers because of the security and stability they provide. FRM also gives safety from rapid rises in interest rates so that monthly payments will stay fairly consistent throughout the life of the mortgage. The only factor that might make payments increase is an increase in property taxes or insurance, both of which are typically collected by the company as part of the monthly house payment or escrow.
An adjustable rate mortgage or ARM is another type of home loan mortgages in California, which offers less long-term security at the benefit of a lower introductory interest rate. Adjustable rates offer an initial fixed interest rate, but this rate is not fixed for the life of the loan. Most ARMs have a fixed interest rate for 6 months to 5 years, after which the interest rate adjusts based on the current interest market rates. Thus, after the rates begin to fluctuate, so does the payment. Because ARMs carry more risk in the long-run for the borrower, the rates are generally lower than conventional fixed rate mortgage loans. For people willing to bet that interest rates will remain stable or go down, ARM mortgages can be quite effective. Also, most adjustable rate mortgages do carry an interest rate cap which does offer some protection for borrowers should rates skyrocket.
After the buyer determines which home loan mortgage in California is right for him, his next big decision is choosing a lender. Compare rates at several different firms, including banks, mortgage brokerage firms, and credit unions, and use the Internet to quickly compare several lenders at one time. Compare not only interest rates, but also fees. Ask each lender for a good faith estimate, which will clearly outline all the fees associated with its loans. Few people stay in the same home for 30 years; therefore, be on the lookout for prepayment penalties. These clauses penalize the borrower for paying off his debt early. Proverbs 119:66 tells us how to live financially, "Teach me good judgment and knowledge: for I have believed thy commandments." In the spirit of God's Word, evaluate current needs and expectations for the future to select the best home loan mortgage in California options.
Low Cost Christian Home MortgageHome mortgage loans in California have never been at such an advantageous interest rate. Today, the rates are lower on average than they have been over the past 40 years. Take full advantage of the house purchase rates in The Golden State by checking out the lenders waiting to hear from buyers. Now is the right time to buy a new house or to refinance an old note. A home mortgage loan in California will help to manage the buyer's finances and investments. Whether a person is a first-time buyer, or an experienced one with plenty of cash, house ownership is a good investment.
What do buyers need to do to apply for a home mortgage loan in California? The buyer will fill out a short form and submit it to get started. A purchaser can get free quotes when apply for home mortgage loans in California. Contact a representative who knows the market, from San Diego to its northern border and can get the best deal. The purchaser isn't in the driver's seat on this one. By applying for house contract over the Internet, a buyer can talk to more than one lender at a time and compare their rates and terms of service.
Proverbs 18:15 says of the wise man, "The heart of the prudent getteth knowledge; and the ear of the wise seeketh knowledge." Is this true of a buyer? It will be if the buyer is careful to investigate the steps needed for a home purchase in California by checking out several lenders and their offers. In general, buyers need to examine their business dealings before they "sign on the line." Looking over home mortgage loans in California is made much easier by using the Internet to contact several lenders. Comparison of interest rates, fees and closing costs, and checking out the services from each company will give a potential purchaser adequate information to move forward.
Finding a home mortgage loan in California has never looked brighter. The sun has gone down on high interest rates and the new low rates are available to buyers. Home mortgage loans in California are a benefit for retirement because of their low rates. One can find hundreds of brokers licensed to do house loans. Anyone can find one that understands that person's unique needs for a house. The Internet provides state-of-the-art service for mortgages. Anyone can live the American Dream through application for a house purchase contract.
Interest-only home loans are available for buyers who want to lower their monthly payments for a period of time, with the realization that once the payments stop and the principal and interest payments begin there will be a significant increase in the amount of the monthly notes. The interest can be adjusted to meet current rates with a loan. Currently, there is a cap of 7.5% put on this type of agreement. This service is helpful for a person who knows the residence he or she is buying is temporary. There is no return on the sale of the house, but the payments have been made lower with an interest-only home loan. On the other hand, if the homeowner does plan to stay for the long haul, he or she may be counting on a substantial increase in income that will make meeting the higher notes that occur later in the period of repayment.
Most buyers choose services other than those of an interest-only home loan for their home purchase. There are advantages to a standard home loan over interest-only home loans for most home buyers. A set payment, which includes both interest and principal, is easier to budget than the payments through the other form. Even if the income increases over time, a smaller portion of that income will be required for the mortgage than with other options. Another alternative is the adjustable rate mortgages. This long-term mortgage is reviewed periodically to raise or lower the interest rate according to current standards. A change in interest increases or decreases the payments.
Refinancing with interest-only home loans is possible if the Christian homeowner chooses. Particularly, if there is a substantial lowering of rates, it would be to the homeowner's advantage to change to a fixed interest amortization, which would lock in the low rate and allow for payment of both principal and interest. A homeowner would not be able to get an equity loan with an interest-only home loan, however, until quite late in the term because none of the principal would have been paid down. This type of agreement has an appeal to some buyers. Individuals are very diverse and so are their financial needs and concerns. The option to choose from so many different services and terms is a very important part of this process, making it important to seek help from lenders, trusted friends, and God. I can do all things through Christ which strengtheneth me (Philippians 4:13).