The first and most obvious reason to pay off your mortgage as soon as possible is that it will save you tens of thousands of dollars in interest payments each month. In a five-year mortgage, the interest rate (what a mortgage payment would be if interest rates remained the same over the life of the loan) is set to the date the loan is taken out. This is called the initial payment (get more info over here)

home loans: What are the types of home loans available? - Times of India

When the loan is paid off, the borrower then pays a separate loan-level payment which has an annual percentage rate (APR) and the remaining principal remains on the property. There are two different ways to calculate the annual percentage rate: The "fixed rate" method uses the annual interest rate and calculates how much your loan will pay if the rate remains the same over the life of the loan. The "variable rate" method takes the annual interest rate and takes into account changes in the rates for similar loans, such as the annual rate for a new adjustable rate mortgage (ARM) rate. This can provide a better idea of the potential rate of return on the mortgage than the annual rate alone. The interest rate for an ARM varies by loan, but usually is between 3 percent and 6 percent. The interest rate on a fixed rate mortgage is set by the lender, so you may be offered a lower rate.

Can I consolidate my mortgage into a new loan?

Yes. You can consolidate your existing home loan into a new loan with the same interest rate and term.

When my mortgage payment gets higher than the amount I can afford to pay monthly, can I reduce my mortgage payments with a home equity loan? If you are not able to make the payment by the end of the month, you may be able to reduce your monthly payment by repaying the loan early. In some cases, you may be able to reduce your payment if your monthly payments on other loan obligations have not increased since you last applied for this mortgage. How do I apply for home equity financing? You can apply for home equity financing online or by phone. How long does it take for my application to be reviewed? Home equity financing requests are reviewed on a rolling basis. The time to receive a decision will be within approximately two to three business days. If I am refinancing my home, how do I decide which mortgage lender is right for me? It can be quite difficult to choose the best loan for your financial situation, so it's important to find the one that best meets your needs. The first step is to determine which of your mortgage lenders offers the best rate and best terms, based on your specific circumstances. If you do not see a better rate, it could be due to several factors, including the number of loan approvals that lender had. The second and more important factor is the availability of an application fee. If you do not have the means to pay a mortgage application fee, you can always arrange a loan with a lender that offers no application fee, or borrow with a lender that may waive the application fee. What do I do if I believe I've been mis-classified or mis-classified? This may happen to a lot of you. One example is a borrower who has a good credit history and used a low-quality FICO score as a basis for their FHA loan approval.

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  • mr.dude

    your genius in explaining something,.. thx