BIMONTHLY MORTGAGES - ARE THEY FOR YOU?

You make your mortgage payment two times a month, instead of monthly. Since there are 52 weeks in the year, you end up making 26 payments, which is the equivalent of one month's extra payment. This additional payment significantly reduces the amount of interest charged for the mortgage and often reduces the term of the loan.

Most lenders require that you maintain a deposit account from which payments can be drawn on an automated basis. This eliminates some paperwork and the extra mailing that would be necessary with the additional payments. Some lenders will require that the borrower's paycheck be direct-deposited into this same account.

You will want to consider this option carefully, as it could be restrictive for your personal financial arrangements. The biweekly mortgage could also have a less competitive interest rate and may not be offered by your selected lender.

WHAT MORTGAGE TO GET IF YOU'RE A TRANSFEREE

There is a very popular loan available that is almost customized for the transferring borrower. It is called a "balloon" mortgage. The loan is amortized for 30 years, and you will get a substantial break on the interest rate if you are willing to let the investor call the entire balance due at a present future date (usually five or seven years).

However, there are safety features included in this type of mortgage. There is guaranteed renewal at the end of five or seven years at the interest rates available at that time. Most of them only guarantee a new loan if you meet certain conditions (like making your payments on time).

If you decide to stay in your home, you can refinance to avoid the future balloon or call on your note.

The interest break you will get for selecting one of these loans can be as much as one full percent (for example, an interest rate of 8.25 percent when fixed interests are higher).

Interest Only Lowest Mortgage Rate

With an Interest Only Mortgage loan, you pay only the interest on the mortgage in monthly payments for a fixed term. This is a great option if you are looking for greater purchasing power and increased cash flow. This plan could result in a monthly mortgage payment hundreds of dollars less than a traditional mortgage. Check to see how much money you could save!

Adjustable Rate Mortgages

An Adjustable Rate Mortgage offers a low rate that is fixed for the first five years. This type of mortgage allows you to free the equity from your home or to refinance and lower your monthly payments to rates you thought you had missed.

The Lowest Fixed Rate Mortgage

Get the Lowest mortgage refinance rate and interest rate and start saving on your monthly payments. Let lenders compete to offer you a traditional 15 year or 30 year fixed rate mortgage. Check to see how much money current rates will save you!

How to get right type of home loan

If you are going to purchase a home or considering possibility of refinancing your home loan, first of all you should sure to get the right type of home loan. If you get the wrong kind of mortgage, you could lose your money in interest and potentially even lose your house! Here are some things that you should consider when picking out a type of mortgage loan that is best for your financial situation.

There are two categories of home loans that will be available to you when it comes to the interest rate of the mortgage. They will be either fixed rates or variable. Adjustable interest rate (ARM) mortgages come with a slightly lower interest rate, but have so much more risk that they generally are not a good idea. If interest rates skyrocket, you are stuck paying thousands more in interest, and the interest gets so high that you cannot afford to make your mortgage payment, you lose your home. Get a fixed rate mortgage regardless of your financial situation to avoid any interest rate surprises.

Next you will want to figure out what the term of the mortgage that you want to get. How long you refinance your loan for will determine how much your monthly payment is. A general rule of thumb is that the longer you borrow the money for, the lower the amount of payments you will have. You should also consider though that the longer you borrow money, the more interest you will pay. You will easily pay two and half times the interest with a 30 year mortgage compared to a 15 year mortgage, so try to pay off your home in as short of a period as possible.

Don't get your mortgage to be too short that the payment is astronomical and there is no way you could possibly pay the payment. Avoid having monthly payment that is more than 25-30% of your monthly take home pay. If it's any more than that you will start to get in a realm that so much of your money is going to your mortgage that you begin to be unable to afford to do other necessary things.

There are just some types of mortgage which everyone should avoid. Interest only loans are a really bad way to go because you will be in debt forever. Often times these interest only mortgages have adjustable rates which are also to be avoided. You might hear a lot of other creative ways to finance a home, but usually they are bad for the consumer. Get a fully amortizing fixed rate loan over a period that you can afford that is a reasonable percentage of your take-home pay to get the right mortgage for you.