Fixed Rates

Fixed rates are the most conservative way of borrowing. Fixed interest rates are typically higher then Arm rates. Fixed mortgages could be for 30, 20, 15, and 10 years. The Interest rates are fixed for the “life” of the loan. In recent years few terms such as 40, 45 and 50 years fixed rates were added.

During the early amortization period, a large percentage of the monthly payment is used for paying the interest. As the loan is paid down, more of the monthly payment is applied to principal. A typical 30 year fixed rate mortgage takes 22.5 years of level payments to pay half of the original loan amount.

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Arms

Arm loans are solutions for those who like to obtain relatively short term borrowing terms. Arms can be fully Amortized, which means you pay principal and interest, or they can be Interest Only, which means you pay only interest when making your monthly payment.

The most important aspect of Arm loans are the rate adjustments. Many Mortgage Brokers and Banks do not fully explain what the adjustments are. In general, the lower the rate of an arm, the faster it will adjust after the fixed term ended. Arms are typically fixed for a period of 6 months, 1 year, 3 years, 5 years, 7 years, or 10 years. The interest rate and monthly payment can change, after the fixed period ended, based on adjustments to the index rate.

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Refinance

Refinance of a mortgage is typically used to shorten the term of the mortgage, or to obtain a lower interest rate. As your San Diego Mortgage Broker, SDEloan.com strives to achieve both. Our goal is to provide the lowest possible interest rates and the shortest term possible so you can build equity fast and pay far les interest.

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Heloc

Home Equity Line Of Credit (HELOC) is a second mortgage on your home. It is a mortgage in a form of line of credit secured by your house. This loan is second in position after your first mortgage.

While it may be tempting to take out a second mortgage in order to get money, remember, if you fail to adhere to the payment schedule, you could end up losing your home.

Two common issues that may warrant a second mortgage are large home improvement projects and debt consolidation.

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Debt Consolidation

Debt consolidation loans can be secured and unsecured. Secured loans are loans that are secured by your house. Typical Secured Loan will be HELOC or Fixed Second Mortgage. At SDEloan.com we will evaluate your entire debt including credits cards and auto loans and will recommend “Debt Action Plan” and type of loan to help you pay off your debt quickly.

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