The important mortgage loan rates and saving you should know

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The loan rates are different from state to state and money lender to money lender. Though, when someone borrows federal loans, the charges of the loans remains pretty much the same. The similarity of charges might not occur in state to state as well, as federal government also provides different type of loan rates according to the average pay scale of the citizens and their occupations as well. Though, it does not differ while providing loan rates for FHA mortgage loans. The loan rates of mortgage loans for purchasing a house, the loans rates for refinancing, and the home equity loans are almost fixed in different states so find online sources for borrow money. The return rate of savings with the federal banks is also almost the same in different state. In this discussion, different type of loan rates of mortgage loans and also different return rates for savings with federal state bank will be discussed.

Different type of mortgage loan rates:

The state bank provides different type of mortgage loan packages for the borrowers. There are three types of loans that are disbursed form the mortgage section of loans. These three types of loans are:

  • Mortgage loans for purchasing a home
  • The refinance loans
  • The home equity loans.

Below, loan rates of mortgage loans are discussed.

Mortgage loans for purchasing a home:

There are several types of mortgage loans that are available by the mortgage lenders who are authorized from the federal state to provide federal mortgage loans and they provide mortgage loans on loan rates that are approved by the FHA. As according to the present date of 2015, the present mortgage loans are provided in seven different plans. The loan rates along with other loan conditions are also being provided in the list below:

1. 5/1 Smart Rate Mortgage loans:

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The 5/1 Smart Rate Mortgage loans are provided by the FHA mortgage lenders. According to these mortgage loan plan a borrower needs to repay one fifth of the market price of the house as the down payments. The rest of the price of the house is paid to the seller by the mortgage lenders. It means that the 80% of the home price would be payable by the mortgage lenders at the beginning of the loans. According to this rate a borrower will borrow an amount form the lender that is 4/5 of the total price of the house going to be purchased by the borrowers.
The loans are provided with the feature of adjustable loan rates. If the loan rate in the market is high than the borrowers will have to pay a high rate for the loans, and also if the loan rate is low in the market, then the borrowers will have the facility to repay the loans in a low rate as well. There is another facility of getting the smart rate mortgage loans. It is that when you avail yourself a smart rate mortgage loans, you will be able to adjust the loan rates according to your income scale. If you have a high rate of income, then you can choose to pay a big amount of repayment every month and thus reduce a big share of loan. On the other hand, when you are going through a phase of life where you are not being able to earn much, you can choose to pay a small amount of repayment every month and thus adjust your loan repayment with your present income and without the risk of making any default in repaying the loans.

image There are two types of 5/1 Smart Rate Mortgage loans. One of them is normal rate 5/1 Smart Rate Mortgage loans and another is low cost 5/1 Smart Rate Mortgage loans. For the first loan, you have to pay a loan fee that is much more than other loan package charges. For the later, you will have a low rate of loan fee, but the interest rate for the loan would be a little higher than the normal rate 5/1 Smart Rate Mortgage loans. At the same time, you will have two types of timeline for these two types of 5/1 Smart Rate Mortgage loans. They are the 15 years of timeline and the 30 years of timeline.
For the 30 year timeline, a normal rated 5/1 Smart Rate Mortgage loans would charge 2.49% interest rate, where the required APR rate is 3.07%. For the 30 year timeline, a low rated 5/1 Smart Rate Mortgage loans would charge 2.83% interest rate, where the required APR rate is 3.12%. For the 15 year timeline, a normal rated 5/1 Smart Rate Mortgage loans would charge 2.38% interest rate, where the required APR rate is 2.90%. For the 30 year timeline, a normal rated 5/1 Smart Rate Mortgage loans would charge 2.73% interest rate, where the required APR rate is 2.97%.
The loan amount can be disbursed from a minimum range of $110 k to $417 k for providing 5/1 Smart Rate Mortgage loans.

2. The fixed loan:

The 30 years fixed rate mortgage loans are known as the most popular loans among all mortgage loans. In 2011, this loan made a record of the highest amount of personal loan package disbursed for the US citizens. The feature of these loans is quite different form smart loan plans. For these loan plans, the mortgage borrower cannot change his or her loan rates in any situation. The loan interest rates in which the loan was disbursed will not have any impact from the loan rates getting increased or decreased in the present market. When the loan rates are not steady, when they are always on change depending on the market rates, then it becomes a little tough for the borrowers to get fixed on any budget for themselves for expenditure. That is why, the borrowers who have a stable condition in their income or have a pretty good or reliable job source, relies on the fixed mortgage loans than the changeable or adjustable loan rate mortgage plans.
One can get two types of mortgage loan plans being disbursed for the fixed rate loan plans. The types of the loans are depended on the timeline being provided for repaying the loans. One can get two types of timelines on the fixed rate mortgage loans. One of them is the 30 year timeline for fixed rate mortgage loans and there is 15 year timeline for fixed rate mortgage loans. There are also two types of loans provided for the 15 year timeline fixed mortgage loan plans. One of them is the normal rate of 15 year fixed mortgage loans and there are 15 year low cost fixed mortgage loans. For the first one, one can get a low rate of loan interest rates but a higher rate of loan fee rate than the low cost fixed mortgage loans. On the other hand, for 15 years, low cost fixed mortgage loans, one can get the loan in less amount of loan fees than the other fixed loan plans, but the interest rate of the loans are slightly higher for these loans than the normal rate fixed mortgage loans.
For the 30 year timeline, a normal rated fixed Rate Mortgage loans would charge 3.69% interest rate, where the required APR rate is 3.78%. For the 15 year timeline, a normal rated fixed Rate Mortgage loans would charge 2.99% interest rate, where the required APR rate is 3.14%. For the 15 year timeline, a low cost loan fee rated fixed Rate Mortgage loans would charge 3.35% interest rate, where the required APR rate is 3.38%.

Comparison among the rates of different loans:

While comparing the loan rates of different mortgage plans provided by the FHA, it can be said that interest rate and APR arte gets slightly low for the mortgage loans that have a shorter timeline. So, people who would get a long timeline like 30 year timeline to repay the mortgage loans would have the facility to repay the monthly payments in less amount of money, but they would end up paying more money on the loan fees and also the APR rates as well. On the other hand, people how have taken the shorter timeline for repaying the mortgage loans, would have the problems of repaying a big amount of monthly repayment for the mortgage loans, the monthly repayment amount would drain out a pretty big share of regular income from the borrower.

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Through they would have a less interest rate charged on the loans. That means that the borrowers will have the facility of repaying more money on the capitals of the loans and less money on the loan rates and loan fees.

Contact

Federal Mortgage Loans

hollisterpaschersale.com

+1 253-815-7939
+1 143-310-7859

Address: 34000 1st Way w #101, Federal road, sA 90220, United States