Posted on 02 January 2011
Tags: 15 Year Mortgage, 30 year fixed mortgage, 30 year mortgage, amount, budget, charges, Comparison, economic, education, expenses, extra amount, financial services, fixed mortgage, fixed mortgage rate, fixed rate mortgage, income to save, installments, interest, interest charges, interest rate, intervals, invest, land, larger time period, lease, less interest, Lower Interest Rate, Money, mortgage loan, Mortgage Rates, notion, observation, price, pros and cons, time period, years mortgage
When you want to buy something and you are out of the required money, you have two options. Either quit from getting that particular thing or have it but on lease. In the later case, you are given the time to submit the money in the intervals. This way you are supposed to pay some interest on the net amount of the price.
Talking specifically about the houses, we generally stuck between the notion that a 30 year fixed mortgage is better or a 15 year fixed mortgage rate is reasonable.
Well, What-so-ever you chose, decide while keeping your budget and finances in mind. In short you must carefully consider all the pros and cons regarding it.
Comparison
Some people say that the 15 year mortgage is much better. The reasons they give include that you get to owe your house soon and the sum of the total amount at the end is relatively less than the net amount that’s comes in the case of 30 years mortgage. But some people are found to be more comfortable with the 30 years mortgage because they think in larger time period; it would be easier for them to pay the dues because per month they have to pay comparatively less. They find it easy as they don’t have cut off their expenses and stuff. They can easily manage a very less amount for installments every month.
We therefore, eventually did a comparison between these two. Taking a simple example for knowing either the 15 year mortgage is economical or the 30 year mortgage is reasonable, we found the following results by doing random calculations. Here it is:
You want to buy a house for $300,000 and you decided for 30 years fixed rate mortgage at 6.5%. You will have to pay somewhere between $1900 and $2000 monthly. And at the end, $300,000 will be paid by you on your house and $382,633 on the interest. The total comes out to be $682,633 which is almost the double of the amount of the price of your home.
If you decide to buy the same house but with 15 years fixed rate of mortgage, you will have to pay $2,532 per month. You will have to spend $455,682 at the end of the 15 years. House spending will include $300,000 and the interest charges will include $155,682. The total will come out to be $226,951, which is less than the amount we got in the case of 30 years mortgage.
Therefore, by seeing the results above, it is clearly shown that 15 years mortgage is found to be more economical but, there will be a burden of paying high installments.
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Posted on 13 February 2010
Tags: 30 year mortgage, 30 Year mortgage rate trends, adjustable rate mortgage, BFM FHLMC Mortgsecurities Fund, chief economist, economic, Economy of the United States, Finance, fixed mortgage, fixed rate mortgage, freddie Mac, home loan, home mortgage loan, interest, interest charges, interest fee, interest only mortgage, Interest Rates, lower mortgage rates, Mortgage, Mortgage Bankers Association, mortgage news, Mortgage-backed security, Personal Finance, refinance, Refinance loans, refinancing, Strategies Research Partners, Super jumbo mortgage
No doubt, 30 year mortgage is the most popular type of home loans among people as it offers a fixed interest rate and monthly payments are lower. But due to the long term mortgage borrowers is required to pay off more interest over the loan life. These mortgages are the best options to purchase home through loans.
A fluctuation in the rates on the 30-year mortgages has been recorded as in comparison with the last year these rates are lower this year. Last year the average rates were about 5.16% where as the average rate this year is nearly 5%.
According to Freddie Mac fixed rate mortgages have faced a drastic downfall from the 4.04% to 4.34%. Likewise, this downfall was also recorded on five year adjustable rate mortgages from 4.27% to 4.19% before a week. While the rise in one year ARMs have been recorded from 4.22% to 4.33%.
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Posted on 15 July 2009
Tags: 15-year fixed, 15-year fixed mortgage rates, 30 year fixed mortgage rate, Business, Finance, fixed mortgage, fixed rate mortgage, Interest Rates, jumbo loans, jumbo mortgage, Mortgage, mortgage loan, mortgage rate trends, Real Estate, Super jumbo mortgage
Mortgage interest rates for Jumbo loans have also gone down in previous week. Due to this decline, the difference between normal mortgage rates and jumbo rates is also reduced. Spread has narrowed so to speak.
During Last year, as we entered the credit crisis, banks were very reluctant to give Jumbo Loans. For those lucky few, who got the loan, the interest rate charged on Jumbo loans was sky high. I know a friend who paid 2.5 percent more than the prevailing interest rate for conforming mortgage rates. 
Current trend in jumbo mortgage rates is that it is now back to normal. By normal, it means that you can now easily find a Jumbo Loan with mortgage rates that are only less than one percent above the conforming mortgage rates.
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