Fixed And Arm Mortgages [mortgagerates-tips.blogspot.com]
Mortgage Moments Vol 10. Do you have an ARM? Do you know when it adjusts? Do you know how high it can go? All these questions and more should have been explained when you got the loan. But too often, these explanations were not made or made so you understood them. Here the is what you should have been told and what you should be monitoring. J Michael Seely conducts live seminars and webinars on "Demystifying Mortgage Loans" His goal is to put you in charge of your most important financial asset...your real estate and the mortgage that supports your real estate. Learn how to save thousands when obtaining a loan and 10s of thousands over the life of a loan. visit www.UnderstandingYourMortgage.com and learn just where you stand with your mortgage or purchase. Thanks for watching.
mortgagerates-tips.blogspot.com Adjustable Rate Mortgage (ARM) payment Shock: What you shou
The 15-year fixed-rate mortgage also hit a record low, declining to 2.89% in the most recent week from 2.94% in the prior week. Meanwhile, the average rate on the 5-year Treasury-indexed hybrid adjustable-rate mortgage remained at 2.79%. The 1-year ... 30-year mortgage rate falls to record low of 3.62%
Below we will discuss the different types of mortgage loans and some key points of each one. Before we begin that, we must address rates, a dynamic that transcends all different types of mortgage loans and affects them immensely.
Fixed Mortgages New Jersey
Over approximately the past four years, the average of 30-year fixed rate mortgage loans has remained below 6.5 percent. While Federal Reserve short term interest rate increases do have an affect on fixed mortgage rates, yields on long term government bonds and fixed rate mortgages are closely tied. Sub 6.5 percent rates will become a financial endangered species as rates move into the upper 6s in the second half of 2006 approaching the ten-year average of 6.9 percent.
However, borrowers are still favoring fixed rates mortgages New Jersey over adjustable rate mortgages because the difference in initial rates is not worth the risk; current 30-year fixed rate averages 6.34 percent, while a 5/1 ARM is 6.08 percent and a one-year ARM is 5.73 percent.
Adjustable Rates
The fluctuations of Adjustable Rate Mortgage loans New Jersey (ARM) are inexorably linked to short-term interest rates determined by the Federal Reserve. Since Ben Bernanke's takeover as Fed chairman, he continued to move short term interest rates upward to thwart possible inflation; most experts state that he will definitely error on the side of caution - raising rates higher in the foreseeable future. Borrowers already in an ARM mortgage should be bracing for a jump in their payments that in many cases will be quite substantial. The one year Treasury, a common index for adjustable rate mortgages, may top five percent by the time the Fed is done raising interest rates, add on the margin of 2.5 percentage points and many ARM borrowers will be looking at a rate of 7.5 percent. Depending on your loan balance and previous interest rate one simple adjustment can make your monthly payments much more of a burden. Suggest Fixed And Arm Mortgages Issues
