Fixed Mortgage Rate - A fixed mortgage rate means that the interest rate of your fixed mortgage will stay the same throughout all the time you have the mortgage. There are also fixed mortgage rates available for short term like for five years or ten years etc. these types often have balloon payments at the end of the term.

Adjustable Mortgage Rate - An adjustable mortgage rate means that the interest rate can go up or down depending on the ecconomy interest rates. Interest rates for an adjustable mortgage are often much lower as an incentitive but are guaranteed to go up over time. It is a good thing to look at the cap of an adjustable interest rate to see how much it is allowed to go up and down and how frequently over the period of your Loan. There is a mortgage rate known as a hybrid which can change from a fixed rate to an adjustable rate after so many stated years.

Frequently used Home Loan and Mortgage Terms:

Balloon Payments - A short term fixed rate loan which involves small payments for a certain period of time and one large payment (balloon) for the remaining amount of the principal at a time specified in the contract.

Hybrid Loan Rates - Hybrid rates change from a fixed rate to an adjustable Loan rate after so many stated years.

Loan Application Fees - Application fees are expected such as credit check fees, private mortgage insurance and points.

Lender Points - A point is a percentage of the loan eg. One point is 1% of the principal value of the loan and two points is 2% value of the loan principal.

Default - Failure to meet legal obligations in a signed contract, like not making the payments on a loan.

Delinquency - Failure to make payments on time.

Interest Deferment - If mortgage has a monthly payment that is less than the note rate, the unpaid interest is deferred and added to the balance of the loan

Principal - The principal is the amount of debt left on a loan which does NOT count the interest.

Amorization - Means a loan payment by equal periodic payments calculated to pay off the debt at the end of a fixed period including any interest on the outstanding balance

Home Appraisal - An estimate of the value of any property it has to be made by a qualified professional Appraiser

Construction loan - A short term interim loan to pay for the construction of buildings or homes.

Conditional Approval - This is just a first step and is based soley on what you have written on the application form, the bank will have to check out if everything you have written on the form is true and correct before the next step of actually approving your mortgage loan refinancing or second mortgage loan.

What is the best mortgage for you?

Find out using our Best Mortgage Chart: Always read contracts through before signing anything!

A Fixed Rate Mortgage For 10/15/20 or 30 years

The interest rate and the monthly payments stay exactly the same for the entire life of the loan.

Good if you are planning to live in the property for more than 10 years.

A 10/1 Year Adjustable Rate Mortgage

The interest rate and monthly payments remain the same for 10 years. From the 11th year onwards interest rates are adjusted every year.

Good if you plan to live in the property for more than 10 years and you can accept later changes or if you are planning to move within 10 years and need your loan changeable.

7/23 due in 7' Mortage

The interest rate and monthly payments remain the same for 7 years. Conversion option for the 8th year, interest rate adjusted to general interest rates but resulting payment will remain the same for remainder of the loan

Good if you plan to live in the property for more than 10 years and you can accept one payment change or if you are planning to move within 7 years and need your loan to be changeable.

7/1 year Adjustable Rate Mortgage

The interest rate and monthly payment remain the same for 7 years On the 8th year interest rate is adjusted every year for the life of the loan.

Good if you plan to live in the property more than 7 years if you are planning to move within 7 years and need your loan changeable.

7 Year Balloon Mortgage

Interest rate and monthly payments remain the same for 7 years but at the end of the 7 years the loan is due in full. Borrower can refinance at contemporary interest rates.

Good if you plan to live in property more than 7 years and you are able to refinance or you plan to move within 7 years and need stable payment rates.

There are other Mortgage rate terms such as 5/25 or 5/5or 5/1 adjustable rate mortgage and 5 year balloon mortgage, 3/3 and 3/1 adjustable rate mortgage and 1 year adjustable rate mortgages, ask your bank loan manager or mortgage broker about these mortgage rates, they follow the same trend as the above rates with different yearly terms.

Want to borrow money on your existing home?

A General Guide To How Credit is Graded by Banks Loan Lenders and Mortgage Brokers:

Grade & Score

Debt Ratio

Max LTV

Credit Type

Delinquencies

Number of times

Delinquencies

Number of days

Delinquencies

Within - Months

Additional Criteria

Note: Lenders Differ

A+ A-

670+ 660

28/38

85-95%

Mortgage

Installment/ Revolving

none

0/1

none

30 & 60

0 - 24

12-24

Excellent credit during last 2 to 5 years. No bankruptcy within the last 10 years

B+ B-

620

75-85%

Mortgage

Installment/ Revolving

2 - 3

2-4/0-2

0-12

No 60-day mortgage lates. 2-4 years since bankruptcy. Higher number of rolling late payments could be allowed for Inst/Rev

C+ C-

580

75%

Mortgage

Installment/ Revolving

0-2

3-4

0-12

1 to 2 years since bankrupt discharge. High rolling lates allowable Inst/Rev.

D+ D-

550

65-70%

Mortgage

Installment/ Revolving

1-2 2-6


Bad 
payment
record 90 
day 120 
isolated

0-12

Not in foreclosure but bankruptcy discharge within the last year.

up to 520

50-65%

Mortgage

Installment/ Revolving

1-2 2-6


Bad 
payment
record  
recuring
lates

recuring

All Time

Stable employment but current bankruptcy etc.

Note:Money Lenders will look to see if you have more than a couple of credit cards and how many current loans you have etc all these things will also make a difference. There are many money lenders that are quite willing to give bad credit money loans, these are not usually banks. But if you fall in the above categories you may still be able to get a loan from a bank if you are in current stable employment. In some cases assets like cars etc make a difference also.

If you are just needing a smaller Loan to do up a house or renovate etc you may consider other forms of money loans and financing. You can easily obtain a credit check yourself, your credit check can be done online, and they will send you out all the information regarding your credit status, this will help to ease your mind before you go for a home loan or equity loan. It will also help if somthing comes up in your credit check that you did not know existed so you can get it cleared up straight away.

I once had a loan denied after a credit check, I eventually managed to get financed and I told the manager that the last lender denied me because of a bad credit check he had done. He did his own credit check and told me it was due to an appliance company that said I owed them $200 dollars. This was untrue as I had only been hiring a washing machine from them and had returned it because it broke down, but they continued to invoice me, I called them - explained - and the invoices stopped, but not before they had obviously given me a bad credit rating which to this day they have not reversed. But I have had no trouble getting loans since then as each loan you pay-off on time and never default on gives you a great credit rating. Look around there are plenty of money lenders, financial advisors, finance companies and mortgage brokers on the internet, check out some of them, check out their interest rates etc. Most of all be honest with your application because the figures speak for themselves!

Home and Mortgage News: USA - World

Sacramento Home loans - what's ahead Sacramento Bee - Sacramento,CA,USA

Miami Home Loans - HIGH rates, red tape are problem for buyers Miami Herald (subscription) - Miami,FL,USA ... BBVA Bancomer and president of the Mexican Bankers Association's committee on mortgages. . titles are clear and legal protections for their loans...

Interest Only loans Los Angeles Times - (information on this site needs registration) can give buyers a jolt Los Angeles Times (subscription) - Los Angeles,CA,USA ... the most popular mortgages this year could also prove to be one of the riskiest to the unwary: short-term "interest-only" adjustable-rate loans with low ...

New ways to pay the mortgage San Francisco Chronicle - San Francisco, CA, USA ... The Home Equity Manager, as it is called, is similar to mortgages already popular ... for mortgage interest, making them eager to pay off their loans as soon ...

How will rate change impact key markets? Ocala, Florida, USA - Ocala Star-Banner .. costs for homeowners with fixed-rate loans, they could hurt those with adjustable-rate mortgages. ... particularly popular in areas where Home prices have ...

What you can expect from your agent Chicago Tribune (subscription) - Chicago, IL ,USA ... about two weeks looking for a home after contacting ... the Internet in the buying process, mortgages are another ... 9.8 percent of all closed loans originated with ...

Plan Protects home Value Syracuse Post Standard - Syracuse, NY, USA ... in February to pay the premium for people who use Fleet mortgages...vacant buildings, build new homes and offer home improvement loans to homeowners ...

Home Loan Interest rates fall on long-term mortgages Grand Forks Herald - Grand Forks,ND,USA ... encouraging news for people in the market to buy a home. ... rates on 30-year and 15-year mortgages, it has a ... Thirty-year and 15-year loans each carried an average ..

Home Equity Loan offers provide hope for lenders News OK.com (subscription) - Oklahoma City,OK,USA ... In a Lending Tree-sponsored survey of 802 homeowners, 20 percent of the respondents agreed with the statement: "loans and second mortgages are two ...

Is there a housing bubble - could the Fed rate hike be the ... DetNews.com - Detroit, MI, USA ... By the end of 2003, the nation’s homes were worth $15.2 trillion, with mortgages and Home loans accounting for about 45 percent of that value, according to ...

World Home Loans and Mortgage News:

HBOS acts on special Home loans This is London - London, England, UK Banking group HBOS has suspended all new loans from its specialist Home Loan Division division, The Mortgage Business, because of worries over service standards. ...

Sydney Morning Herald - Sydney, New South Wales, Australia ... of the reception centre, and then one day there was a bang on the door of the family home in Randwick ... The loans were secured by mortgages on commercial ...

Banks lift rates on mortgages Asahi Shimbun - Tokyo, Japan ... to 0.4 percentage point on fixed-rate mortgages of five ... the banks left untouched their long-term loans with low ... products typically used to reel in home buyers. ...

Reverse Mortgages - Making The Golden Years More Golden. NewsEaglePoint.com - Eagle Point,OR,USA Unlike traditional loans, no repayment is required until you die, sell the home or stop living there. HUD federally ...

Americans face nasty surprise as rates rise Reuters - USA ... The bulk of the $10 trillion owed by households is in home loans, most of which is at fixed rates. But about 20 percent of outstanding mortgages are variable..

More information on Home Equity loans - second mortgages and Life Insurance Terms:

Mortgage Credit Rates FAQs: Credit - Conditional Approval - Collatoral - Loan to Value - Loan Debt Ration - Applying for a Loan - Home Loan Equity - Loan Default - Blanket Mortgage - Mortgage Amorization Equity Loan - Mortgage Rate Chart - Life Insurance Term

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