What are the most popular mortgages in real estate?
by Mortgage Rates on Sunday, October 3rd, 2010 | 3 Comments
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I have a 30-year fixed at 6% with no prepayment penalties. It all depends on a person’s credit.
There are 30 year, 15 Year, some 20 Year Fixed Loans
Your Adjustable Rate Mortages normally run between 15 and 30 years.
And interest rates change when fed changes them, right now the are 5.5% (I think) to 8.5% and higher for worse credit. Depending on your banker you can specify the terms.
Always include no penalties for pre-payment.
Do you want popular or sensible? Fixed is always considered the best way if you do not like surprises! You are encouraged to pay off your bills early if you can just ask them to put the extra on the principal and not on the Interest. Interest rates are moving up and down constantly and no one can say for absolute surety what the interest rate will be when you close on a deal. When you pay off early you save a bundle in Interest over the long haul.
The most popular today is the 30 year FIXED RATE.
The general public has gotten a real education over the past 2 years on mortgage finance.
The bad news. Lots of people got screwed because they did not think the unthinkable would happen to them (Black Swan) Namely, that:
1. Interest rates would stay at 30 year lows forever.
2. When it came time to re-finance the adjustable rate, they would simply sell, make $100,000 and do it again on their next home.
P.S. The lesson learned here. ALWAYS ask yourself “What can go wrong?”
P.S.S. There’s a rouge wave out there with everybody’s name on it. The people who own a life preserver survive. Everyone else files for bankruptcy of goes into foreclosure.
Hope this helps.
Terry S.
http://www.Welcome2Arizona.com