Home Loans - Rate Yer Beast
Life on the high cyber-seas is always a wicked rush - big waves! Unknown creatures catching a ride on my keel and peerin' into me captains quarters. Its a big ocean out there, filled with all manner of fish and home loans in all colors of the rainbow. But instead of colors these loans differentiate by costs and reason.
Home loans - from the prince to the pauper
Most landlubbers be fearful of one thing more 'an any other when it comes to home loans - interest. We always be twittering in out boots when we read about increasing rates, and we leap like the pygmies off the shores of New Guinea when we head word of a fall in market values. So what be the more expensive home loans regardless of time or financial state?
- To the surprise of many, young and old, the most expensive home loans are second mortgages, home equity financing that you takes out as yer reward fer being a fine housing stooge. Thing is, these home loans are overshadowed by yer first mortgage, and in response you will pay greater amounts of interest fer in increased risk of yer mortgage provider.
- Next in line to walk the costly plank be fixed rate home loans of the kind ye be gettin' fer purchases or refinance. See, a first mortgage and a refinance mortgage both take possession of the principal claim to yer home - the risk is the same so rate be the same and they all go off skipping down the lane like fairies! But a fixed rate mortgage be nothin' but soft, hard as nails and tough no matter what the weather. When rates be low - as they are right now - fixed rate home loans be a bonzer idea, and are sure to maintain yer financial integrity.
- At their inception, adjustable rate mortgages be the grandaddy winners in the affordability bout, only because there is increased risk but the risk is now entirely yours. You'll have the benefit of initially low rates, but if those rates go up so will your monthly payments.
Such is the sacrifice of affordability, and such is the way with dastardly home loans. Now gets back to work ye filthy vermin! We've gots a chest full o' equity and we're running low on port!
All material copyright © 2006 Mortgage Pirate. All rights reserved.
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