Mortgage - Free Calculators

Interest Only Mortgage

In recent years interest only mortgages have become hugely popular across America. With property values increasingly dramatically in many cities, interest only mortgages have allowed many people to realize the American dream of homeownership.

How they Work

When you obtain a conventional amortized mortgage, part of your monthly mortgage payment goes to paying down the principal. But with an interest only mortgage you're not obligated to pay down the principal during the first term of the mortgage. You will have to pay interest and other attendant fees, such as mortgage insurance, homeowner's fees, inspection costs, and the like, but the principal balance will stay the same.

The first term of the interest only mortgage varies depending on your type of mortgage. But typically it will last for five or ten years. Once that term has expired the principal will be amortized for the remaining length of the mortgage.

Advantages and Risks

Interest only mortgages can be a great tool, especially for younger homebuyers. For many people their peak earning years are in their forties or fifties. So purchasing one's dream home via an interest only mortgage can enable younger homeowners to establish themselves fiscally and professionally. In the intervening time the homeowner can often use their mortgage interest payments as a tax deduction. And with the housing market's steady long-term climb the homeowner also has the benefit of accruing equity on their property.

The risks associated with interest only mortgages are almost exclusively tied to short-term economic fluctuations, particularly changes in the housing market. Without careful financial budgeting interest only mortgages can increase the chances of financial stress or foreclosure. But maintaining a healthy saving account or a diverse investment portfolio, and living within one's means, can significantly reduce these risks.

Obtaining an Interest Only Mortgage

For help with finding great loan offers for an interest-only mortgage, you can turn to America's Lending Partners. ALP is not a lending institution, but can connect homebuyers with a vetted network of interested and legitimate lenders. If you need guidance choosing the right mortgage you should also consider consulting with a Mortgage Planner, who can prepare a custom mortgage plan for you and guide you step-by-step through the mortgage application process.

Fixed Rate Mortgage

A fixed rate mortgage, also known as a FRM, is a popular mortgage vehicle that ties the borrower into a fixed interest rate over the life of the mortgage. Fixed rate mortgages are usually 30 years in length, although variants include 15, 20, 40 or even 50 year lengths.

Advantages and Risks

The overwhelming reason for the popularity of fixed rate mortgages is financial stability. Homeowners with a fixed rate mortgage typically see a minimal, if any, increase in their monthly mortgage payments. Any increases tend to arise from property tax or homeowner's insurance rate rises. But the core mortgage payment will not change. And thanks to the mortgage principal being amortized for the duration of the loan, at the end of the fixed rate mortgage's life the homeowner owns their property outright.

But fixed rate mortgages aren't for everyone. They often require a higher monthly payment because of the financial stability they bring. And homeowners who only intend on living in their home for several years might end up paying more than they need before they move on to a new property. Furthermore, if you obtain a fixed rate mortgage while interest rates are comparatively high, you must refinance to lock in a lower interest rate and clinch lower monthly payments.

Getting a Fixed Rate Mortgage

If you're interested in obtaining a fixed rate mortgage, consider the free, no obligation service provided by America's Lending Partners. ALP can match you with up to four trusted lenders. You can then evaluate their fixed rate mortgage offers and choose the one that's right for you.

If you're unsure whether a fixed rate mortgage is right for you, speak to one of ALP's experienced mortgage planners, who can help to evaluate your situation and provide you with a no obligation mortgage plan.

Jumbo Mortgage

A jumbo mortgage loan is a conventionally large loan which allows you to purchase big parcels of real estate or luxury homes.

Advantages and Risks

The definition of what qualifies as a jumbo mortgage loan varies from state to state. In the continental United States, a jumbo loan is approximately $415,000 for a single-family home. In Alaska and Hawaii, however, jumbo loans are around $625,000 for a single-family home. Prices for duplexes, three-unit, and four-unit homes also vary from state to state.

Jumbo mortgages can be critical for people who want to buy property that is too expensive to qualify for a conventional mortgage. In today's housing market that definition covers an ever-increasing percentage of homes. But approach jumbo mortgages with caution: they will place you under greater financial pressure. Not surprisingly, jumbo home loans are considered higher risk than conventional mortgages.

Obtaining a Jumbo Mortgage

If you're planning to take out a jumbo mortgage, it's crucial that you have a good long-term budget in place. Apart from the financial logistics, jumbo home loans require you have to have exceptionally good credit, which can take time to establish.

Make sure you work with an experienced mortgage professional to stay within your debt-to-income ratio. You may also want to begin storing up money to build up your net worth and knock down the principal in order to qualify for lower jumbo mortgage rates.

Whether you're looking to purchase a home or to refinance your existing home, you can employ America's Lending Partners to match you with up to four trusted lenders. You can evaluate the terms these lenders offer and thus come to a far more responsible decision about what's right for your budget. ALP's service is free and secure.

If you'd prefer more guidance with your mortgage application you should consider consulting a mortgage planner, who can provide the knowledge and honesty you'll need to obtain your jumbo mortgage.

Debt Consolidation

Being burdened with personal debt can be stressful and costly. Interest rates can vary wildly from one lender to another, depending on the type of loan you have. And while individual auto loans, credit card debts and personal loans may seem small, they can quickly add up.

Conquering Consumer Debt

Consider this: according to The Motley Fool, the average American household owed more than $18,000 in consumer debt as of October 2003. And this rate has since increased. One of the reasons this has occurred is because many people pay only the minimum due on their debts each month. But that strategy can cost you tens of thousands of dollars over the years. Paying even a little bit more than the minimum each month can make a big difference.

Solutions for Homeowners

But if you're a homeowner, there are other options too. If you are burdened with excessive personal debt it might be time to consolidate your bills into a new second mortgage. Mortgage interest rates are still at historical lows, and are often lower than credit card and personal loan rates. You'll need to weigh up your options carefully, and make sure you don't end up paying more money with your consolidated mortgage than you do right now.

Even if you have a less than perfect credit score and a rocky history with creditors, you can still benefit from a debt consolidation home loan. And America's Lending Partners can help you get a great debt consolidation loan.

Why waste time and energy chasing individual lenders when you can have them work for your business? Fill out ALP's 4 loan offer form and negotiate with up to 4 lenders directly. Or, if you would prefer to work with an experienced, ethical expert, try ALP's mortgage planning service. Both are quick, easy, and require no obligations.

Home Purchase

For most people, purchasing a home is their single biggest lifetime expenditure. Unless you have hundreds of thousands of dollars tucked away for a straight purchase, you'll have to pay off your home purchase in installments, via a mortgage. Typically, your mortgage consists of two components: your initial down payment; and ongoing monthly payments that can last 30, 40, even 50 years, depending on the type of mortgage you choose.

Purchase Pitfalls

Experts suggest doing a significant amount of research and legwork on your own before you start shopping for properties. There's a lot of great information out there, especially in books and on the Internet. But beware that much of this information is rather generic. The housing market is constantly evolving, so predicting which way rates will go, and how they affect mortgage products, is very difficult.

Unfortunately, many new home buyers don't understand the implications of high interest payments. A difference of a single point on your interest rate can translate into hundreds of thousands of dollars over the life of your mortgage. So if you lock in at a rate that's higher than ideal, you could suffer chronic financial and emotional strains, and ultimately run the risk of foreclosure.

Another aspect of the mortgage industry that causes problems for first-time buyers are all the different mortgage types that are available. In addition to fixed rate mortgages, there are several different types of adjustable rate mortgages, many of which are interest only and can be significantly affected by interest rates and margins.

Expert Help

It's all very daunting. But fortunately there are resources available, like America's Lending Partners' Help Center. And there's more good news! America's Lending Partners offers a free, no obligation service which allows you to get up to four home loan offers from some of the nation's leading lenders.

If you need further help with your home purchase, you should also consider a Mortgage Planning service. An experienced mortgage planner can evaluate your mortgage needs and financial goals and create a no obligation mortgage plan tailored to your situation. And if you like your mortgage plan, your planner can then shop around for you, and get you the best rate.

Mortgage Planning is a new concept that is much more than just a brokerage. Mortgage planners can guide you through the home buying process every step of the way. And you can rest assured they are not only experienced mortgage professionals, but also licensed and ethically certified.

Line of Credit

Unlocking home equity has become increasingly popular in recent years with homeowners. One method of accessing that equity is a line of credit, which is also known as a HELOC or open end home equity loan. A traditional second mortgage gives you a lump sum of cash and requires you to pay the principal amount, plus interest, over the life of the mortgage. A line of credit is similar, except that it can also be used as a revolving credit line.

How it Works

With a line of credit you can borrow against the balance, and use that money for various diverse uses. Typically, if the line of credit's balance exceeds the original mortgage amount you'll pay back the difference at a variable interest rate. But if you have a fixed-rate line of credit, and have paid off, say, $10,000 of the principal, you can borrow that $10,000 and pay it back at the original fixed rate.

Prudent Use

Lines of credit have been very popular in recent years, although not all lenders offer them. They can be a great tool for some, especially people with a moderate amount of disposable income. But a line of credit can also be dangerous for those who lack fiscal discipline. Borrowing recklessly against a line of credit can result in serious debt and the possibility of losing one's home.

As with any mortgage, if you're applying for a line of credit make sure you read the fineprint. Double check how interest is calculated if you exceed the original mortgage balance. And treat this type of financial tool carefully, so it works to your advantage.

Cash Out Loan

If you've had credit trouble in the past you might find yourself constantly fretting about bills and creditors, and struggling to pay everyday expenses.

One of the worst parts about being strapped for cash is that you are inevitably forced to waste time siphoning money back and forth into different accounts to keep your head above water. This "financial gardening" can strain your resources and prevent you from making aggressive budget decisions.

Getting Cash Out of Your House

But there's good news: by refinancing your home with the appropriate mortgage you may be able to get cash out from your house to consolidate your bills, pay off creditors, purchase education for your children, and so on. By tackling your chronic financial obligations with the battering ram of a big cash loan, you'll end pesky surcharges, interest rate charges, and creditor fees. Moreover, you'll begin the process of restoring your credit rating and generally easing the burden on your income stream.

Of course, to make sure you start off on the right track, you'll need to learn more about mortgages, and obtain the appropriate cash loan financing. Through America's Lending Partners, a premier service dedicated to helping borrowers with less than perfect credit, you can comparison shop for mortgage lenders and get up to four free quotes from companies who actually want your business. Instead of fretting about whether or not a lender will take your call, you'll get up to four separate calls from lenders.

Expert Advice

This is not to say that a cash loan will be the single cure to your financial ills. In order to manage your finances effectively in the long-term, you need to reorganize your budget in such a way that you will be able to make interest payments and avoid falling back into trouble.

A great resource for assisting in this area is America's Lending Partners' Mortgage Planning service. ALP's dedicated, experienced mortage planners can not only get you a great mortgage, but also get you the mortgage that best suits your long-term needs. These solutions, combined with financial prudence, will put you on the road toward financial freedom.

125% Second Mortgage

There are all sorts of second mortgage options available to homeowners. One that has proved popular in recent years is the 125% second mortgage. With this mortgage you can borrow up to 125% of the value of your home.

Cash for All Seasons

When combined with positive equity, a 125% second mortgage can result in a large amount of cash back, which can be used on any number of things. Pay off your debts, make home improvements, pay for school, buy a new car, or finance your dream vacation.

The slowdown in the housing market has brought a reduction in the number of lenders who offer 125% second mortgages. But if you have an excellent credit score, some home equity, and a home in a stable area, you should be able to still find a willing lender.

Projecting Your Finances

If you're interested in a 125% mortgage, feel free to fill out our simple form. We will then select up to four trusted lenders, who will be able to provide you with more mortgage details.

As with any mortgage, check the fineprint carefully, and try to project where a 125% second mortgage will take you. If you lock in with a low interest rate you can actually save money with a 125% second mortgage when compared to credit card debt or some personal loans. But the wrong situation can also lead to financial stress and the risk of foreclosure.

If you are unsure if a 125% second mortgage is your best option, you can also talk to an experienced mortgage planner and benefit from their knowledge and ethical advice. They can advise you on the pros and cons of a 125% second mortgage and help you complete the first steps to obtaining your ideal mortgage.

Personal Loan

Battling debt and unexpected financial emergencies can be stressful and frustrating - especially when dealing with these financial hardships without the proper resources and guidance. Thankfully, there are many no-hassle legitimate solutions available in today's consumer culture.

Evaluating your Options

Before you apply for a personal loan, here are some interesting facts. Did you know that if you're a homeowner you can use your home's equity the same way you can use a personal loan? Refinancing frees you from the needs of a personal loan and uses equity that you already have available. And often, refinancing can yield a lower interest rate than a personal loan.

While some personal loan lenders require borrowing against a home or car, many provide options for obtaining unsecured loans, which do not require collateral. The process for applying for a personal loan can be as easy as applying for a credit card. Carefully chosen personal loans can offer several benefits, including: fewer documents to sign and process, fast financing, flexible payment options, fixed interest rates, and low to no fees. But as with any financial decision, review the terms carefully before you sign.

Make sure you are making the correct decision before you apply for a loan. Do you want a personal loan? A personal loan, also known as a signature loan, is a loan granted for personal use - while a refinance or home equity loan uses the equity you have built in owning a home.

Money Solutions

If you're a homeowner and are interested in using your home's equity, America's Lending Partners can help you. Just fill out ALP's free, no obligation application. You'll get to choose from up to four great loan offers.

If you don't own a home, or if you feel a personal loan is more suited to your needs, there are still services that can help you. There are a variety of personal loan services through which you can get the loan you're looking for today.

If you have reservations, speak to a debt specialist and discover if this is a smart move for you. Free yourself from financial burdens: there is always a positive solution.

Adjustable Rate Mortgage

An adjustable rate mortgage, commonly known as an ARM, is a mortgage that has an interest rate which can vary over the life of the mortgage. Adjustable rate mortgages present both opportunities and challenges for homeowners. If you refinance your home or consolidate your debts and mortgage correctly, you could save money substantially by taking advantage of lower interest rates. On the other hand, if you're not careful about how you refinance, you could do more harm than good in the long run.

Length of Ownership

Lenders often advise homeowners to take out adjustable-rate mortgages if they plan to live in their homes for just a few years. With an ARM you can generally obtain a cheaper rate than with a fixed rate mortgage. The key to lowering your payments is to lock in a lower rate for your ARM, so that you pay less every month. Paying a little extra on the principal each month can also help from a psychological perspective.

Here to Help

Whether you want an ARM or a fixed rate mortgage, America's Lending Partners can help you find a great low rate. ALP's free, no obligation service can provide you with up to four home loan offers.

If you're unsure whether an ARM is right for you, speak to an experienced mortgage planner, who can provide you with a no obligation mortgage plan, based on your long-term financial goals.