Adjustable Rate Mortgages Bring Higher Payments as Interest Rates Rise
Foxboro, MA (July 24, 2006) Easy Apps Mortgage, a mortgage broker based in Foxboro, Massachusetts with offices in Florida, is urging clients to convert their adjustable rate mortgages to fixed rate mortgages before their payments get out of hand.An Adjustable rate mortgage loan, also known as an ARM, has an interest rate linked to an economic index. The interest rate, and a person's payments, are periodically adjusted up or down as the index changes. ARMs accounted for about one third of mortgages granted in 2004 and 2005. According to a new study by the Federal Reserve economists, many Americans are unaware of the terms of their adjustable rate mortgage and drastically underestimate the amount their loan payments may increase. For example, the principle and interest on a 30 year, $200,000 loan at 5 percent would be about $1,073 per month.
At 8 percent, the same principle and interest payment jumps $400 to nearly $1,473 per month. According to Robert David, President of Easy Apps Mortgage, now is the time to convert from an adjustable rate mortgage to a fixed rate mortgage before interest rates and payments increase. Regardless of a person's credit history, we have mortgage programs available. We realize people are more than just a credit score and we are here to help people succeed in programs to suit individual credit needs. In most cases, less than perfect credit is not a problem when it comes to finding a mortgage.Easy Apps Mortgage has a 60-second mortgage application online and a friendly staff.
Contact us today before your mortgage becomes unaffordable, says David.About Easy Apps MortgageEasy Apps Mortgage is your MA and FL mortgage loan specialist. They can be reached toll free at 888-441-3279 or on the web at www.easyappsmortgage.com..
Adverse Mortgages May not Benefit the Consumer Warns Mias
(ContentDesk) March 22, 2006 -- MIAS (the Mortgage and Insurance Advisory Service) is concerned that the boom in the sub-prime or adverse credit mortgage market will not necessarily translate into a better deal for consumers.In the past, the worst excesses of the sub-prime market could be summed up as, the miss-selling of the most expensive and complex mortgages to some of the least affluent and financially-astute people.With so many high street lenders moving into this sector, including Alliance & Leicester and new arrivals such as DB Lending funded by Deutsche Bank, MIAS would hope that this would change. However, the old adage that increased competition is always a good thing for customers, because it brings down prices, may not apply in the adverse credit market. Commenting, Alistair Good, Managing Director of MIAS (http://www.mias-ltd.co.uk ) said: The increased profit margins of the adverse credit sector must be hugely...
Adverse Mortgages May not Benefit the Consumer Warns Mias
Mortgages > Adverse Mortgages May not Benefit the Consumer Warns Mias
An Introduction To Mortgage Loans
Mortgage loans are financial loans taken for real estate properties that the borrower has to repay with interest within a fixed period of time. A mortgage loan requires some sort of security for the lender. This security is called the collateral and in most cases, it is the real estate property itself for which the mortgage loan has been taken. Since the property itself is kept as the collateral, no further security is needed.
The person who lends the mortgage loan is called the mortgagee, while the person who borrows the loan is called the mortgagor. The mortgagee and mortgagor are bound by the mortgage loan agreement.
The agreement entitles the mortgagor to receive a financial loan from the mortgagee. The promissory note in the agreement secures the mortgagee, which entitles them to the collateral and a promise made by the mortgagor to repay the mortgage loan in due time. In the USA, the typical period for a mortgage loan may be 10, 15, 20 or 30 years.
Mortgages > An Introduction To Mortgage Loans
Adverse Mortgages May not Benefit the Consumer Warns Mias
(ContentDesk) March 22, 2006 -- MIAS (the Mortgage and Insurance Advisory Service) is concerned that the boom in the sub-prime or adverse credit mortgage market will not necessarily translate into a better deal for consumers.In the past, the worst excesses of the sub-prime market could be summed up as, the miss-selling of the most expensive and complex mortgages to some of the least affluent and financially-astute people.With so many high street lenders moving into this sector, including Alliance & Leicester and new arrivals such as DB Lending funded by Deutsche Bank, MIAS would hope that this would change. However, the old adage that increased competition is always a good thing for customers, because it brings down prices, may not apply in the adverse credit market. Commenting, Alistair Good, Managing Director of MIAS (http://www.mias-ltd.co.uk ) said: The increased profit margins of the adverse credit sector must be hugely...
Adverse Mortgages May not Benefit the Consumer Warns Mias
Mortgages > Adverse Mortgages May not Benefit the Consumer Warns Mias