One point is equal to 1% of the principal amount of the mortgage.Īrizona Mortgage Banker License # 0911088. Discount points are charges paid to the lender voluntarily, usually at closing by the borrower or seller, to reduce the interest rate.Contact the VA for the maximum loan guaranty amount for your county and for more information on the funding fee. Maximum loan guaranty amount varies per county. For VA Loans, VA funding fee required and will vary.For ARMS, the APR, interest rate, and monthly payments may increase after the introductory interest rate period.*The annual percentage rate ("APR") calculations on first-lien mortgage loan products in the tables are based on typical prepaid finance charges-actual charges may vary based on the terms of the loan and geographical area.The actual payment obligation will be greater. Monthly payment does not include amounts for taxes, property insurance and mortgage insurance (where applicable).All rates and programs subject to loan underwriting and approval and may be subject to change depending on individual credit profile and other qualifications.Loan Estimate issued within 3 days of application.Tax and insurance escrow account created.Refinancing may increase the length of your loan and the total amount of interest you pay over the life of your loan.Learn more about how to refinance and compare today’s refinance rates to your current mortgage rate to see if refinancing is financially worthwhile. ![]() Keep in mind that closing costs when refinancing can range from 2% to 6% of the loan’s principal amount, so you want to make sure that you qualify for a low enough interest rate to cover your closing costs. The best time to refinance will vary based on your circumstances. ![]() If you want to pay off a 30-year fixed-rate mortgage faster or lower your interest rate, you may consider refinancing to a shorter term loan or a new 30-year mortgage with a lower rate. When should you refinance a 30-year mortgage? Because the adjustment period is unpredictable, ARM loans are seen as a high-risk loan option while 30-year mortgages are viewed as low-risk. While ARM loans typically offer an initially lower rate than a 30-year mortgage, after the fixed period ends, interest rates and monthly payments may go up. For example, on a 5-year ARM, the interest rate remains the same for the first five years, and then adjusts for the remaining term. An adjustable-rate mortgage (ARM) has an interest rate that will remain the same for an initial fixed number of years, and then adjusts periodically for the remainder of the term. ![]() How does a 30-year fixed-rate mortgage compare to an ARM?Ī 30-year fixed-rate mortgage has a 30-year term with a fixed interest rate and monthly principal and interest payments that stay the same for the life of the loan. Because the mortgage is fixed, the interest rate of 3.75% (and the monthly payment) will stay the same for the life of the loan. For example, on a 30-year mortgage for a home valued at $300,000 with a 20% down payment and an interest rate of 3.75%, the monthly payments would be about $1,111 (not including taxes and insurance). Learn more about 30-year mortgages What is a 30-year fixed-rate mortgage?Ī 30-year fixed mortgage is a home loan with an interest rate that stays the same over a 30-year period.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |