Introduction to Mortgages
Imagine a world without credit, where you would have to pay for everything in advance. Without credit we would be unable to pay for houses, cars or even college tuition. While it isn't fun to pay back the money we borrow it really is amazing that we can leverage the power of money so quickly and easily.
This section is built to give a background on what it takes to get a good loan and what types of loans are available to you. Different loans have different applications and different payment structures.
For example:
- Interest only: Gives you a very small payment for a few years, but requires you to take a more expensive payment in the future. This loan is good for buyers who will only stay in a home for a few years.
- ARM or Adjustable Rate Mortgage: This locks in your payment at a low rate today, but your payment may go up or down in the future. This type of loan is riskier than Fixed-Rate but it gives you a smaller payment while still allowing you to pay down the principle of the loan.
- Fixed-Rate: This loan is one of the safest types available. Fixed Rate gives you a slightly higher rate but it the rate will not change.
Learning the types of loans, what types of buyers stand to benefit from certain loans and what kind of qualifications you need to get a loan are important to your financial future. The following articles can help you make an informed decision:
- 1. The Benefits of an Adjustable Rate Mortgage
- 2. The Purpose of FHA Loans
- 3. Pay Down Your Mortgage Faster With a Bi-Weekly Program
