Mortgage Interest Calculator

Funny I should see a piece on CNN Money And Finance recently that just because mortgage interest rates are hovering right around 5.9% and could go even lower that anyone would think about the refinance residential mortgage mindset right now.

I guess it would all depend on how long you have had your current loan and what type of terms you have on that loan that would qualify your thinking on a refinance option.

Interest rates have been at about the current levels for nearly 18 months but if some analysts are correct, now may be a good time to consider making a move if it is possible.

Of course, it all has to make sense. By using a mortgage interest calculator, like the one we have here on our site, you need to make sure that the cost and maintenance of your new loan is more beneficial to your pocket book than your current loan.

Most new loans will come with fees so you need to figure out how long it will actually be before you recoup those costs.

Other area’s you need to pay attention to are costs related to things your new lender may require. Things such as title searches, current appraisals, any type of needed inspections, mortgage insurance and any “other” type of processing fees. Sometimes the deck can be loaded on these loans.

Remember an old refinancing golden rule. If when adding up all the fees and costs associated with your new loan and figuring in how much you are saving each month on the new loan, you should be able to recover those cost with your new savings in 7 years or less. If not, steer clear!

My experience has shown that the recoup time figure should be more close to 5 years or it’s a bad deal. Again, there are many factors but if you should need to move anytime within 5 years or less you will actually lose money on the new deal.

Of course, if you are in an ever escalating mortgage because of the terms of your current loan, then by all means refinancing is something you must consider.

Due to the loss of home values over the last 12 months in many area’s of the country anything but a fixed monthly rate can truly be eating your wallet alive. It could be several years before home values regain enough equity to justify any type of high interest type of loans.

Only careful and accurate information you dig up on current mortgage interest rates and the use of an accurate mortgage interest calculator will give you the information you need to make the most informed and wise decision on how to structure your own home mortgage.

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The mortgage interest loan “thing” has been popping up in my email inbox quite a bit lately. It took me a few minutes of comparing some notes when I finally realized what you were asking about was the no interest loans of days gone by.

As you all well know by now, one of the major causes of the recent and ongoing housing debacle was in part due to the notorious no interest loans.

Are they still available? Yes and no. Yes if you fit a very narrow profile that the banks are now lending to and no if you don’t.

Banks appear to be favoring these types of home loans to those who are not just a regular wage earner who is seeking out a moderate sized loan and who really doesn’t have any type of strategy for investing any of the savings.

These type of loans are those in which you only pay the interest part of the loan each month for a fixed term at which it is usually wise to sell the property or refinance the whole lot.

Since selling the home is extremely tough these days and refinancing can mean owing more on your home loan than it’s actually worth you may be faced with making skyrocketing payment once your fixed term expires.

So…mortgage interest loans? Stay clear for now unless you are an experienced investor with great credit and a nice stash of cash to hold you over if need be.

Get out the mortgage interest calculator and do a little shopping around if you are in the market. Find out what you can afford and start taking advantage of the current market. Buying something now can snag you a great home loan with good terms that will have potential for some tidy profits once the market turns…which shouldn’t be long.

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Adjustable rate mortgage you say? Isn’t that what caused the housing “great depression” you keep seeing in your local papers and TV broadcasts?

Well folks, fankly I am sick to death of all the gloom and doom the irresponsible media has been pouring down on us for nearly 16 straight months. Must be an election year.

Yes, the housing market completely stinks right now. No arguments there. I want to move too and can’t because the buyers off hiding till the sky is no longer falling.

You see, the real facts are that nearly 98% of ALL home owners are making their payments on time. Yes, you read that right. Not quite 3% of all home loans in the U.S. are actually in default yet the media would have you all believing we are heading into the great depression.

The adjustable rate mortgage can be largely to blame but even that in and of itself was not the cause of the so called housing bust. Greedy investors. Greedy and underhanded banks and just plain stupid people who got in way over their heads are largely responsible for what we have seen.

Now they…and a ton of us are paying for it. But it doesn’t have to be that way and I predict that the not to distant future will bear me out.

ARM’s are still around. They haven’t been quite as popular not only because of the bad press and tighter lending requirements but also because they just have been a very good deal.

At the beginning of 2008, the 5/1 are rate was less than a quarter point than that of a 30-year FRM. (A 5/1 ARM is a fixed rate for the first five years and then adjusts every year after that. That difference has nearly doubled as of last week’s mortgage rate survey which can be a great thing concerning your monthly payment.

Go ahead and use our mortgage interest calculators and figure it out! As an example, carrying a mortgage balance of $250000 you would save $5000 on interest in your first 5 years of the loan compared to a fixed 30 rate of 6.6%.

One of the keys here is the 5 year term in which so many lame brains did not consider. Taking out an adjustable rate loan in which you face rates changes within the first couple of years was suicide in this market. Those who took the 5 year options are doing well right now and I wages will make a profit when the markets return.

And they will return. They always do and this is not exception. If you are still sitting on the fence I wouldn’t wait until I got slivers in my butt if I were you while considering to buy a house. You will never find deals out there like what is going on now and I believe the bottom of all is close if not already here.

Depending on your circumstances and you financial portfolio, now may be the perfect time to get on that mortgage interest calculator and figure out if an adjustable mortgage makes dollars and cents to you.

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