If you are looking for a way to significantly lower your monthly house payment, a 5 Year Adjustable Rate Mortgage may be exactly what you are in the market for. These types of loans are perfect for use when purchasing deeply discounted (or reduced value) properties that have become more and more common as a result of the housing crisis. These kinds of loans are attractive to buyers for a variety of reasons. With a 5 Year Adjustable Rate Mortgage, the buyer is required to make their monthly loan payments at the prevailing interest rate, a rate that will not change for the first 5 years of the mortgage. There is a 7 year term mortgage available as well, but the longer the term of the loan the higher the interest rate generally is. These payments during the fixed period are interest only – meaning you are paying nothing toward the principal of your loan. While this may seem like a risk to some, the 5 Year Adjustable Rate Mortgage is a blessing to those who desperately need to negotiate a
If you are like most prospective homeowner's, you are probably in search of finding low mortgage interest rates. Finding the lowest possible rate not only saves you money every month, it can drastically reduce the total amount you will pay on a mortgage. In most cases, it will save you several thousand dollars over the course of a loan. There is no doubt, the lower the interest rate you can secure, the better off you will be financially. So how can you go about securing the lowest mortgage interest rates? Check out the following tips below that can help land you the best rate available and save you money. 1. Consider a Shorter Term Loan A bank or mortgage lender will normally offer a much lower mortgage interest rate as the terms of the loan decrease. For example, 30 year fixed mortgage rates will usually be higher than a 15 year fixed rate. On the other hand, a 40 year mortgage interest rate will be higher than that of the 30 year loan. If you are considering a shorter term loan,