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Mortgage Information
A mortgage is a loan that a homebuyer obtains
directly from a lender to purchase real estate. The
mortgage is a lien on the property that secures a
promissory note (promise to repay the debt) that states
the terms of the loan, including the interest rate and
the number of payments.
The most popular mortgages available to home buyers
today can be divided into two general categories: those
that offer fixed interest rates and monthly payments,
and those in which one or both of those factors are
adjustable.
Fixed-rate/fixed-payment loans are more traditional and
remain the most popular home financing method, currently
accounting for about two-thirds of all residential
mortgages. Their advantages are well-known: you always
know what your monthly principal and interest payment
will be, so your basic housing cost will remain
unaffected by interest-rate changes until the mortgage
is paid off.
Mortgages that entail flexible rates and/or payments
have grown in popularity in recent years, primarily
during periods of high interest rates and/or rapidly
rising home prices. Many, including the popular ARMs
(Adjustable Rate Mortgages), offer lower-than-market
initial interest rates that allow buyers a measure of
affordability unavailable in fixed-rate loans. The
tradeoff may be higher interest rates and higher monthly
payments later on.
We recommend
Ricardo Brasil of Wells Fargo Home Mortgage as our
preferred
Boston Mortgage Broker
For more information, visit our
Mortgage Guide |
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