jonathanj003 asked:


I purchased a home for $220,000 three months ago (March). I put 10% down ($22,000) and financed $198,000 on a 30-year fixed mortgage. I have excellent credit and excellent history. My question is if I am able to pull some equity out of my home (which appraised for $230,000) this soon or not? I’d like to pull around $15,000 out. Is this feasible? If not how much would I qualify for if any?

Jacob

Anthony Frankson asked:




Explanation: Mortgage Types – Fixed Rate Mortgages

The basic mortgage has always been the 30 Year Fixed Mortgage. With this type of mortgage you get an interest rate that stays the same (fixed) for the entire length of the term. What this means is that you can count on paying the same monthly payment for the next 30 years without any “surprise” increases in the amount. You know what your payment will be each month and you can make your budget accordingly. There are now 15, 10 and even 5 year fixed mortgages but they come with a hefty monthly payment.

Explanation: Mortgage Types – Adjustable Rate Mortgage

Another mortgage example is the Adjustable Rate Mortgage or ARM. This type of loan adjusts to the fluctuations in the interest rate that is determined by certain market forecasting indexes. The interest rate of this loan is initially lower than the fixed rate but after the introductory period the loan then begins to fluctuate. This is a good choice when interest rates are low but can be burdensome when interest rates are high. One disadvantage of these loans is that you cannot predict exactly the monthly payments because they are subject to change.

Explanation: Mortgage Types – Convertible Mortgages

Convertible Mortgages are another example. This is a kind of hybrid of the fixed and adjustable mortgage. This is popular because it has flexible options; when rates are high you can convert to the fixed rate and when the rates are low you can convert back to the adjustable rate. This loan has other names such as Reducing Interest, Reduction Option, etc.

Explanation: Mortgage Types – FHA and VA Loans

The final two mortgage types are for special social categories. The FHA Loans by the Federal Housing Authority guarantees the repayment of loans made by private lenders to low and moderate-income level populations. VA Loans, by the Veterans Administration, guarantees the repayment of funds made by private lenders to qualified veterans who have served in the United States Armed Forces and the National Guard.

This is just a simple basic overview of the mortgages available today. With the above information you must now begin to get much more extensive information on the specific features that fit your particular situation best. The Internet is your best source for finding out this information because it allows you to make comparison rate shopping very easily.

The Internet is also the best resource for finding a lender with whom you can do business. Be sure to have an in depth discussion with your lender about the particular loan you are getting before you sign any papers binding you to a contract. Remember, never sign a contract if you any doubt about the terms of the mortgage agreement that is presented to you.

Jamie

Jesse R Wojdylo asked:




With interest rates moving up recently many American homeowners are looking to compare mortgage interest rates today. Some analysts feel that April 2010 is going to be the turning point when it comes to the current low rate environment we are in. Since the beginning of April we have seen the 30 year fixed mortgage rate move up from 4.75% all the way to 5.1%. Do not be surprised to see this trend continue.

The Federal Reserve Bank is no longer purchasing mortgage backed securities and the 10 year treasury rate yield has seen a strong up trend over the last few weeks. These are two strong indications that mortgage rates are set to move much higher over the next few weeks and months.

By going through the process of comparing home loan rates today Americans could save a significant amount of money on their monthly home loan payments. It is important to understand that not all homeowners are going to qualify for a very low rate in the current economic environment. Unfortunately, some homeowners are going to find that they qualify for a rate closer to 6% than 5%.

No one knows if April 2010 will be the yearly lows for mortgage rates but many analysts continue to predict much higher rates in the very near future. Some analysts have been predicting this since as early as November of 2009. Luckily, overall rates are still low but do not be surprised if current loan rates move up to levels closer to 6%.

Dorothy