Mortgage : Home Loans : Refinance : Home Equity Loans

By Ben Afzal

First you need to decide how much you are willing to spend as a down payment.

You may have money to put down but decide that 100% financing makes more sense for you.

If you use an online mortgage calculator to figure out your monthly payment you will see that a 10% downpayment does not affect your monthly payment by very much. For a $500,000 purchase you would need to put $50,000 down to make a 10% downpayment. Your monthly payment may only be reduced by a few hundred dollars. You may not want to part with the $50,000 for the slightly smaller monthly payment.

Use a mortgage calculator to figure out what kind of downpayment you will need.

100% financing is an option for many borrowers, even those borrowers without stellar credit.

Time Table You should also figure out what your timetable is to pay off your loan.

If you want to be aggressive about paying off your loan than a 15 year loan term may be right for you. This will give you a higher monthly payment than most other loans. You need to decide if you can live with this.

You also need to decide how loan you need the interest rate on your loan to be fixed.

The longer an interest rate is fixed, in general, the higher the interest rate is on the loan.

A 30 year fixed loan will have a higher interest rate than a loan where the interest rate is only fixed for 10 years.

If you plan on keeping a property for only 2 years than a 5 year fixed loan may be right for you.

Loan Types

There are also some loans that come with the ability to make lower payments. An interest only mortgage offers you the chance to make a lower interest only payment for an initial period. This period may be a year, 5 years, 10 years, or a different timeframe. When you pay at the interest only level you are not paying off the loan balance. It will remain the same.

Minimum payment option loans allow a borrower to pay less than interest only. Any amount less than interest only is added on to the principal of the!
loan. T
his loan type offers a very low monthly payment, however.

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For additional Mortgage Refinancing information
and resources visit Mortgage Refinancing.
(http://www.refinance-refinance.net)
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This entry was posted on Friday, October 13th, 2006 at 2:21 am and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.