Mortgage Loan Options

Unless you have enough money to pay for a house yourself, you'll need a mortgage loan. A mortgage is a loan you take out to finance the purchase of your home. It is also a legal contract stating that you promise to make a monthly payment until your loan is paid off.

Today, there are hundreds of different programs to choose from, but don't let that overwhelm you. Most of the home loans are variations of a fixed-rate mortgage and adjustable-rate mortgage. Knowledge of how the mortgage programs work will help you to understand the majority of available loan options. You may qualify for a new loan without even selling your current home. Call your CENTURY 21 Platinum Partners to help you see what you can afford.

A fixed-rate mortgage home loan is a loan with an interest rate that will remain at a specific rate for the term of the loan. About 75 percent of all home mortgages have fixed rates.

An Adjustable-rate mortgage (ARM) loan is a loan with an interest rate that is periodically adjusted to reflect changes in a specified financial index.

A Convertible adjustable-rate mortgage is a mortgage which starts as an adjustable-rate loan, but allows the borrower to convert the loan to a fixed-rate mortgage during a specified period of time.

A fully amortized adjustable-rate mortgage is a mortgage that amortizes, or pays down, the balance of a loan.

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