Best Fixed Rate Mortgage

Fixed rate mortgage also known as an FRM is a type of home loan where the interest rate is fixed (hence the name) throughout the term of the mortgage, unlike other mortgages (like: adjustable rate mortgages, variable mortgages etc.) where the interest rate fluctuates with the economy.  FRM may also be called hybrid adjustable rate mortgages.

Fixed rate mortgages are classed by the loan’s interest rate which includes the compounded frequency, loan amount and the mortgage term.  Monthly payments are based on those three values.  The number one benefit to these mortgages is the security of knowing exactly how much you will be paying for your home and not having to worry about increasing interest rates.

What is a Reverse Mortgage?

Reverse mortgages are a unique kind of home loan that gives you the option to convert a percentage of your homes equity into money in your pocket.
Home equity builds over time with this type of loan the mortgage payments are paid to you.  The difference between a reverse mortgages compared to other home equity loans is that repayment is not necessary so long as you the owner continue to maintain a permanent residence there. These benefits are provided by the FHA HECM.

As a side note, you may also purchase property with a reverse mortgage, so long as there enough money on hand to make up the difference between the closing costs, cost of the property and the HECM proceeds.

Explain Refinancing a Mortgage

Refinancing a mortgage may be best explained as taking your current mortgage and replacing it with a new one, with the intention of either:  saving money, changing over to a different kind of mortgage, or all of the above.    The process involves leveraging your home and its equity against the amount you want to borrow with the loan.

Mortgage Payments Formula

Monthly payment c is dependent on the interest rate per month r (this is expressed as a fraction). The number of monthly payments N (the mortgages term), with the amount borrowed P0 which is the loan’s principal.  So, rearranging this payment calculation to make a present value for an ordinary annuity you have a formula for c:

c = (r / (1 - (1 + r) - N))P0

Excel Mortgage Payment Formula

To illustrate: a mortgage loan of $200,000 with a yearly  interest rate of 6.5% over a period of 30yr’s,  principal is P0 = 200000, the monthly interest rate is r = 6.5 / 100 / 12, the number of payments monthly is N = 30 * 12 = 360, payments per month are fixed and = $1264.14. This formula is generated by utilizing the financial function PMT in an Excel document spreadsheet.  For this  example, the monthly payment is reached when plugging in one of these formulas:

=PMT(6.5/100/12,30*12,200000)

=((6.5/100/12)/(1-(1ƴ.5/100/12)^(-30*12)))*200000

= 1264.14

Mortgage Free for Life

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Top Mortgage Finder is an online mortgage/home loan resource site covering information, news, facts, tips, rates and quotes or see Wells Fargo mortgage rates.  See our posts for additional information.

Fixed Rate Mortgages, More Cons Than Pros | Real Estate Blo Monty Burn was head of the Voluntary Mortgage Regulator until his sacking for assisting too many people. Find out how to get the best fixed rate mortgage. Reverse Mortgages As A Loan Modification Strateg MortgageOrb recently posted an interview with Randy Gilster, president of First American Loan Production Services where they discuss using reverse mortgages as a loan modification. Explaining refinancing a mortgage Explain refinancing a mortgage? I need to refinance our mortgage. we need to get a loan for about $50000. Answer: About Explain refinancing a mortgage.

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