Choosing
the best mortgage now
By Jeanne Sahadi, CNN/Money Senior Writer
NEW
YORK (CNN/Money) – Mortgage rates have been on the rise for the
past month, but they're still at fairly low levels historically
speaking.
If you're in the market for a new home, you figure it must be less
expensive to buy now than when rates go up even further, assuming
housing prices stay strong in the near term, something economists
expect will happen. That may be the only thing you can be sure about.
But finding the best type of mortgage for your situation can feel
a little like finding the perfect ecru in a sea of beige.
It doesn't have to be that way. If you ask yourself the right questions,
you at least can narrow your search to the best category of mortgage
for which you need to comparison shop.
15-year versus 30-year debate
The
first question you should ask is, "How much can I afford to
pay on a monthly basis?" Keep in mind, your mortgage payment
is only part of what you'll pay to live in your home. You also should
budget for furniture, your house's upkeep and the general expenses
of life (like, say, food).
A 30-year mortgage will have a lower monthly payment and a higher
interest rate than a 15-year mortgage. So you'll have a smaller
monthly obligation but you'll pay more for your house over time
because you're paying it off with interest for a longer period.
Conversely, a 15-year mortgage will have a higher monthly payment
and a lower interest rate so you'll pay less for your house because
you're paying it off in a shorter period.
"For most home buyers, especially first-time buyers, taking
a 15-year (or 20-year) mortgage is out of the question," said
Keith Gumbinger, vice president for mortgage tracker HSH Associates.
The higher monthly payments are often too much to handle for these
types of buyers.
But for home buyers with sufficient income and a desire to be mortgage-free
in a short time, a 15-year loan might be a good bet.
Fixed versus adjustable-rate conundrum
The second question you should ask is, "How long will you be
in the house?" You probably can't answer with absolute certainty,
but you can play the odds.
Say, for example, you're single and buying a small condo but you
can easily envision yourself married; or you've just started a family
and plan to expand it at some point. Chances are good you'll want
to trade up to a new home in five to seven years. On the other hand,
maybe you've had your family and want to settle into a place with
a good school system, which your kids will be using for the next
12 years.
Whatever the answer, it will help you decide whether it makes sense
to get a fixed-rate or an adjustable-rate mortgage (ARM).
A fixed-rate mortgage locks in a rate for the length of your
loan.
ARMs, meanwhile, are short-term fixed-rate loans: After the fixed
rate term is up, the rate adjusts at regular intervals in accordance
with current interest rate conditions at that time. A 5/1 ARM, for
example, has a fixed rate for five years and then adjusts every
year for the next 25 years. (ARMs typically run on a 30-year schedule.)
Article continued at http://money.cnn.com/2003/06/24/pf/yourhome/q_bestmortgage/index.htm
Additional Choosing the Best Mortgage Now Resources
Allhealth
Insurance Services - Online resource for international travel
insurance
Annuities
by Annuity Advantage - Annuity rates and quotes from over 30
different insurance companies. Search, compare and learn about more
than 300 CD-type, fixed-rate, equity-indexed, and immediate income
annuities.
Appraisal
Center - Determine the value of your home.
Auto Loans Financing for bad credit or after bankruptcy - Auto loans financing for bad credit, bankruptcy and all credit related problems. No costs, No Hassles. Fast same day approval.
Auto
Insurance Quotes Online - Cheap online auto insurance quotes
online. Plus quotes for health insurance, dental insurance &
life insurance quotes.
Auto
Warranty Guide - Find tips and reviews for reliable aftermarket
extended auto warranty dealers
10E20 Website
Design - A professional, affordable New York website design company
specializing in search engine friendly website design. Also offers
website redesign, promotion, website hosting, search engine optimization
and website design management services at great rates!
247
Computer Repair - Computer Repair & Networking in New Jersey
NJ & New York NY
247
Laptop Repair - Laptop Repair & Lcd Screen Repair Service
Nationwide.
Adroit
Web Systems - is a professional web services company with a
primary focus on service, quality and customer satisfaction. We
offer a wide range of services.
Affordable
Web Site Design & Graphics - Affordable quality web design
services to meet your budget and expectations! Get a web site professionally
designed for a very low price. Contact us today for your free proposal.
Andreoni.com
- Postcards, Business card design and printing - Andreoni.com
offers professional graphic design and commercial printing services.
Specializing in full color business cards, postcards and plastic
cards.
Astra
Web Design Company - Professional web design and web development,
internet marketing and promotional services, corporate identity
and 3D modeling.
BannersOnline.com
- BannersOnline.com is an advertising design firm that specializes
in banner ad design. We offer web banners, html banners, flash banners
and rich media ads.
Bliss
Computer repair & networking - Computer Repair,Laptop Repair,Networking
in New Jersey NJ & New York NY
Business
Cards Printing - Offers full-color printing for business, including
business card printing, letterhead printing, brochure printing,
postcard printing, and design
Cheap
Printer Ink ~ Canon, HP, Epson Inkjet Cartridges - Visit Re-inks.com
for low-cost ink cartridges, bulk printer ink and cartridge refill
kits. Ships to USA and Canada.
CMS Web Hosting Website Design
e-Commerce & Custom Development - PageTrends offers CMS managed
dynamic web design and website hosting services including CMS secure
e-commerce systems, CRM applications development and more.
COMMERCIAL
PRINTING - West Coast commercial printing of catalogs, brochures,
books, printing press, poster printer.
Decorative
Arts by Jep - Professional Home decorating help via the internet
for any home decorating project,home decor, interior decorating,faux
finishes and before and after pictures.
Full
Color Business Cards & Stationery : Business-Cards.com -
Business-Cards.com supplies a superb range of full color business
cards, envelopes, letterheads, brochures, flyers, postcards and
greeting cards.
Greg's
WebWorx & Design - Drive Traffic to your site with our Exclusive
Advertising, Safelists, Reciprocal Links Exchange, Traffic Exchanges,
and much more...
Ideas
by Creativity Pool - A free database with unused ideas and possible
inventions. Add your own, or bring an existing idea to life.
Joan
of Quark.com - Compelling and Cost Effective Graphic and Web
Design!
KAMCOM
WEB DESIGN:Affordable web site design and search engine optimisation
services for small businesses. Whangarei, Northland, Auckland, New
Zealand
Limo
Service & Airport Transportation. LimoHosting.com - Limousine
Service Directory. Airport shuttle transportation, wedding limos,
town car, sedan, van, limo bus, prom limos. Limo website design.
Limo hosting, limo link exchange, sell or buy limo business.
LogoBee
- Logo Design - High Quality Logo Design For All Types of Businesses.
Logo
Design by Logo Design Works - We provide Logo Design, stationary,
web art and web design for including start-ups, small businesses,
home offices, individuals like artists, photographers etc. A well
designed logo will enhance your company's image! Start for as little
as $99.
OFFSET
PRINTING - So. California offset printing company, catalogs,
brochures, presentation folders, flyers.
Plastic
Printed Credit Cards New Zealand - Earth First Printers and
Publishers, we print Business Cards , Fridge Magnets, Letterheads,
Custom Printed Promotional Pens plus more. Visit us today.
PRINTING
PRESS - Los Angeles commercial printing press for catalogs,
books, brochures, postcards, direct mail services.
Scrapbook
Supplies, Layouts, Scrapbooking Ideas - Shop Online - Shop online
for scrapbook supplies and materials. Find scrapbooking ideas and
layouts. Sign-up for scrapbook classes.
Search
Engine Optimization Company India - Page Traffic - Offers highly
effective search engine optimization, positioning, ranking and link
popularity service from India.
SiteMaven
Website Design - Website Design and Development, Flash, e-commerce,
search engine optimization. If you can dream it - we can build it!
Starter
Plans - The premier online directory for cheap web hosting plans.
Web hosting starter plans with the top features at the lowest possible
prices to start a new website.
Surrex
is where the FIT® Analysis ensures highly effective information
technology consulting and staffing solutions.
Tidalworks
Logo Design - Professional logo design at a fraction of the
price
Web Marketing Now - Web Marketing Now, certified web marketing and search engine specialists.
|
