Compare home loans interest rates

Valuations - Part 2

If you put down at least 20% of the purchase price, you typically won't have to pay for private mortgage insurance (PMI). And when you put down more, you're more likely to qualify for lower interest rates. Putting down more money will likely save you more money over the life of the loan. Learn more about mortgage down payments.

Adjustable-rate mortgage (ARM)

A mortgage or home equity loan in which your interest rate and monthly payments may change periodically during the life of the loan, based on the fluctuation of an index. Lenders may charge a lower interest rate for the initial period of the loan. Most ARMs have a rate cap that limits the amount the interest rate can change, both in an adjustment period, and over the life of the loan. Also called a variable-rate mortgage.

Annual percentage rate (APR)

The annual cost of a loan to a borrower. Like an interest rate, the APR is expressed as a percentage of the loan amount. Unlike an interest rate, however, it includes other charges or fees to reflect the total cost of the loan. The Federal Truth in Lending Act requires that every consumer loan agreement disclose the APR. Since all lenders must follow the same rules to ensure the accuracy of the APR, borrowers can use the APR as a good basis for comparing certain costs of loans.

Interest rate

Cost for the use of a loan, usually expressed as a percentage of the loan, paid over a specific period of time. The interest rate does not include fees charged for the loan. See also: annual percentage rate (APR).

Fixed-rate mortgage

A home loan with a predetermined fixed interest rate for the entire term of the loan.

Discount points

Typically, it’s an amount usually paid at closing to the lender in conjunction with a mortgage loan in order to lower or “buy down” the interest rate. One discount point equals one percentage point of the loan amount. For example, two points on a $100, 000 mortgage would cost $2, 000. Negative points reflect the amount that will be credited to you and reduce the amount of closing costs you will pay. Also called mortgage points or points.

McGraw-Hill Perfect Phrases for Landlords and Property Managers (Perfect Phrases Series)
Book (McGraw-Hill)

How to get the best rate on a home loan?

2007-05-21 20:20:09 by mml510

I am looking into refinance into a 5yr ARM since that's about how long I plan to stay in my current home.
How do I go about getting the best interest rate.
I have excellent fico score (over 800+), and loan will not be a jumbo, and this is for primary residence.
I am not interested in interest only/neg am loans.
Are brokers or banks better for refis. Has anyone tried the online banks i.e. E-loan or ING direct.
What are closing costs/origination fees (basically all fees excluding points) going to add to up. Is it usually about 1% of the loan or more

Information on getting a loan for business

2006-03-14 14:20:58 by LAjoy

I'm trying to pull together some information on obtaining capital for investment into a business ($100K). I'm comfortable with the level of due diligence we'll undertake, but I could use help with identifying available resources. I have about $300K in home equity I can tap if necessary (no other debts).
- I believe new business owners are generally required to personally secure a loan (hence my interest in comparing to loans secured by personal resources). Is this generally correct? Any pros/cons here?
- How do rates for business loans compare to a heloc?
- Is there a centralized resource for comparing business loan rates?
- What are the requirements for a business loan? I...

Compare the numbers after-tax

2003-08-20 16:52:28 by former_tax_guy

You can do a comparison of the two. Most mortgage lenders will supply you with the payment scenarios you have outlined. It would be difficult to know exactly because PMI premiums are not equal among all lenders nor are the interest rates you would pay on a first and second loan.
I might lean towards the PMI scenario for a couple reasons: 1) when you reach the 20% equity mark, it has become much easier to cancel the PMI without refinancing like you might do with a 2nd (some lenders are doing it based on comparable home prices without a full property evaluation; 2) PMI might become tax deductible in the near future.

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