Mortgage Loan Rates-July 16, 2008
30 year 6.375%
20 year 6.375%
15 year 5.875%
10 year 5.75%
Rates subject to change at any time
Provided by Lynne Bateman, Mid America Bank, 573-896-4790 Rates quoted above are for qualified borrowers with a 95% loan-to-value (LTV) or less. Please call for rates on mortgage loans with 95.01%-97% LTV. Rates subject to change at any time without notice Credit scores may adversely affect quoted rates
If you're thinking of selling or buying real estate in the Jefferson City Missouri Area, contact Hank Vogt direct at (573)761-3485 or online at www.hankshouses.com . “I want to be your Jefferson City Real Estate Resource ~ I am at your service!”
Showing posts with label Mortgages. Show all posts
Showing posts with label Mortgages. Show all posts
Wednesday, July 16, 2008
Thursday, March 20, 2008
Jefferson City Area Mortgage Reality Check - Quiz for Homeowners
In recent weeks, you may have seen or heard about a mortgage crisis, as roughly two million homeowners now face possible increases in their mortgage payments throughout the remainder of 2007 and 2008.
As a homeowner, you may be concerned about your own ability to meet your mortgage payments, either now or in the near future. You may be frightened or feeling pressure from your mortgage company or other creditors. You may be at risk of foreclosing. Or, you may just be curious about your financial well-being if you have an adjustable mortgage rate that is likely to increase soon.
Homeownership is the American Dream - a dream everyone wants to preserve. But what's your financial reality in light of a rising mortgage payment that may be hundreds of dollars more a month? What can you do to make things better if you are in trouble or think you will be?
Take the Mortgage Reality Check -- A Quiz for Homeowners, click below
http://www.housinghelpnow.org/MortgageRealityCheck.cfm
As a homeowner, you may be concerned about your own ability to meet your mortgage payments, either now or in the near future. You may be frightened or feeling pressure from your mortgage company or other creditors. You may be at risk of foreclosing. Or, you may just be curious about your financial well-being if you have an adjustable mortgage rate that is likely to increase soon.
Homeownership is the American Dream - a dream everyone wants to preserve. But what's your financial reality in light of a rising mortgage payment that may be hundreds of dollars more a month? What can you do to make things better if you are in trouble or think you will be?
Take the Mortgage Reality Check -- A Quiz for Homeowners, click below
http://www.housinghelpnow.org/MortgageRealityCheck.cfm
Monday, February 18, 2008
Understanding Purchase Points
Not only do you have to understand what type of mortgage you should choose, you have to understand the costs associated with your mortgage. All of these costs will be paid upon closing your mortgage.
Purchase Points
Purchase points, also known as a "buy-down" or "discount points," are an up-front fee paid to the lender at closing to buy-down or lower your interest rate over the life of the loan. Each point is equal to one percent of your total loan amount. If you have a $100,000 loan, one point would equal $1,000. The more points you buy, the lower your interest rate, but the more money you'll need at closing.
How do you decide whether you should buy points and if so, how many? Well, the decision should be based on how long you plan on living in your home and what you can afford to pay each month toward your mortgage. If you plan on living in your home for more than five years, it's probably a good idea to purchase points. The longer you live in your home, the more you can save on interest over the life of the loan.
Purchase Points
Purchase points, also known as a "buy-down" or "discount points," are an up-front fee paid to the lender at closing to buy-down or lower your interest rate over the life of the loan. Each point is equal to one percent of your total loan amount. If you have a $100,000 loan, one point would equal $1,000. The more points you buy, the lower your interest rate, but the more money you'll need at closing.
How do you decide whether you should buy points and if so, how many? Well, the decision should be based on how long you plan on living in your home and what you can afford to pay each month toward your mortgage. If you plan on living in your home for more than five years, it's probably a good idea to purchase points. The longer you live in your home, the more you can save on interest over the life of the loan.
Saturday, February 16, 2008
Basic Principles of all Mortgage Loans
The home is used as security to back up the loan. A lender can force sale of the home if the borrower defaults by failing to make scheduled payments.
The larger the loan compared to the value of the home, the more risky for the lender and, often, the more expensive the loan will be.
Interest earned by the lender always is equal to the periodic interest rate times the outstanding principle balance of the loan. The periodic interest rate is the annual interest rate divided by the number of payments in the year (usually one per month).
The required payment usually is a bit larger than the interest due so that some of the loan principal is repaid with each payment. This process is called Amortization and is why most mortgage loans can be retired when all the monthly payments have been made.
All mortgage loans have one of the following features:
Fixed payment and fixed interest rate - fixed rate mortgages
Fixed rate but variable payment - graduated payment mortgages
Variable rate and variable payment - adjustable rate mortgages
As you learn more about the types of financing available, you will notice that some loans appear to have more favorable terms. That may indicate that those loans are, indeed, bargains (and it does pay to shop around), but usually it means that those loans could have some feature that is less appealing to borrowers. For example, shorter-term loans often have slightly lower interest rates compared to longer-term loans. However, the monthly payment for the same amount of principal may be higher because of the shorter term. Variable rate loans usually have much lower interest rates to compensate for the risk the borrower accepts that interest rates will rise in the future.
The larger the loan compared to the value of the home, the more risky for the lender and, often, the more expensive the loan will be.
Interest earned by the lender always is equal to the periodic interest rate times the outstanding principle balance of the loan. The periodic interest rate is the annual interest rate divided by the number of payments in the year (usually one per month).
The required payment usually is a bit larger than the interest due so that some of the loan principal is repaid with each payment. This process is called Amortization and is why most mortgage loans can be retired when all the monthly payments have been made.
All mortgage loans have one of the following features:
Fixed payment and fixed interest rate - fixed rate mortgages
Fixed rate but variable payment - graduated payment mortgages
Variable rate and variable payment - adjustable rate mortgages
As you learn more about the types of financing available, you will notice that some loans appear to have more favorable terms. That may indicate that those loans are, indeed, bargains (and it does pay to shop around), but usually it means that those loans could have some feature that is less appealing to borrowers. For example, shorter-term loans often have slightly lower interest rates compared to longer-term loans. However, the monthly payment for the same amount of principal may be higher because of the shorter term. Variable rate loans usually have much lower interest rates to compensate for the risk the borrower accepts that interest rates will rise in the future.
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