Many different types of mortgages are out there on the market - supposedly catered to just about every need you could have. While some make it easy to get a mortgage, that alone may not be a worthwhile goal - if it gets you the wrong kind of mortgage loan. Use our application form below to get a great quote today.

Remember you should shop and compare before finalizing a mortgage rate. To find the best mortgage rates, do your research and contact lenders, as well as brokers.

 

There are some types of mortgages you should try to avoid and we will endeavor to explain why they may not be the best thing for you.

 

Before any of these are mentioned, it needs to be said that for some of these, there may be situations where they could be good. Overall, though, people need to be careful in each case.

 

Balloon Mortgages
This type of mortgage loan gives you low payments up front for a specified number of years, and then the balance of the mortgage becomes due - in full. Often, this arrangement is used to be able to get a larger home with a lower payment until finances get better. It is good though, for investors, who only want to keep it for a little while and then turn around and sell it. Another good reason could be if you know that you are only going to live in it for a few years. Be careful, though, because it could force you into refinancing at a new rate that you may not be able to pay.

 

125% Mortgages
These mortgages offer you the possibility of being able to get a mortgage on a new house, and also be able to have extra money too.

The best applicant that is really suited for is someone who is sure they are on the fast track to success. Heading in that direction, however, may not be good enough. If there is a promise of a larger income, soon, and you know that you can pay down the mortgage balance to a below 100% level, then it may be for you. Otherwise, there is a danger of not having any equity in the house for a long time.

 

Interest Only Mortgages
Interest only mortgages imply that you will only pay the interest. In reality there is no such thing as an interest only mortgage, because eventually you will pay the principal, too. These home mortgages provide a lower fixed payment for a few years, then will switch to a payment that will fully amortize it. Because the payment is about 8% lower than one that would be fully amortized, it allows the buyer to get more house for a smaller amount, initially.

 

When it goes to the normal amortized payments, an interest only mortgage must go to a much higher monthly payment, which could be hundreds of dollars more, in order to make up for the lower payments that did not allow full amortization. For many, refinancing would become necessary, or moving.

 

The person that this type of mortgage is ideal for is one who knows about investing and can see a greater profit with the difference, than the amount of interest on the mortgage loans. Another individual, would be the one that is confident that a greater income is on the way.

Rebuild.org brings you the latest news headlines related to Mortgage Loans:

 

• Blacks, Latinos have disproportionate share of foreclosures
  African-Americans and Latinos are being hit disproportionately hard by foreclosures, according to a recent report from the Center for Responsible Lending.
  [August 26th, 2010]
• Is now the best time to buy a home?
  Mortgage rates are at historical lows, but there are other things to consider before you decide to buy a home.
  [August 12th, 2010]
• Many Americans Are Unable to Relocate for Jobs
  Many Americans are reluctant to move because they can't sell their homes or would take a financial hit if they sold.
  [July 30th, 2010]
• Could Low Mortgage Rates Help Sell Your Home?
  Has your home been on the market for a while? Current mortgage rates are historically low and could bring a new wave of prospective home buyers.
  [July 17th, 2010]
• Property Developers Offer “Tax Credits” to Buyers
  Some property developers are offering special "tax credits" to home buyers.
  [June 17th, 2010]

Recent articles related to Mortgages:

 

• Mortgage loan apps surge as mortgage rates hit new lows
  Home mortgage applications surged last week as mortgage rates slipped to new lows. This new demand for mortgage loans could signal a turnaround with increasing demand likely causing mortage rates to rise.
  [September 1st, 2010]
• The US mortgage lending crisis: Understanding the roles of Fannie, Freddie, and FHA
  The housing crisis and demise of government sponsored entities Fannie Mae and Freddie Mac are calling attention to the broken US housing finance system. Mortgage Lenders and the US Treasury are considering expanded government roles for preventing future crises.
  [August 18th, 2010]
• Mortgage Delinquency Rate Falling: More Problems Ahead?
  Although mortgage defaults have fallen for the past few months, it's possible that a new wave of delinquent mortgage loans is looming. Here's why.
  [August 4th, 2010]
• Demand for Homes Mortgages, Refinancing Increasing
  Demand for mortgage loans for purchasing homes as well as refinance mortgages is increasing. This could signal and end to rock bottom mortgage rates and fire-sale home prices. Low mortgage rates and home prices combine to enhance your buying power.
  [July 21st, 2010]
• Low Mortgage Rates: 3 Ways to Refinance Now
  Refinancing your mortgage at today's low rates can lower your monthly payments and help with paying off your mortgage sooner. Here are other ways that refinancing may help with home improvement and improving your finances.
  [July 7th, 2010]