Home Financing - Mortgages, Refinancing. Home Loans, Laons

Refinance - Home Equity - 2nd Mortgage - Debt Consolidation - Home Improvement - FHA VA

Mortgage Rates Advantages

The question, "Should I get a fixed rate or an ARM?" has puzzled every home buyer who has shopped for a loan.

The ARM, of course, is an adjustable-rate mortgage whose interest rate can go up or down. By contrast, a fixed-rate loan locks in your rate for the life of your loan -- there's no need to guess as to where the rate will be next year or in 15 or 30 years.

At first glance, an ARM looks like a heckuva good deal next to a fixed rate. The average ARM rate nationwide is usually less than the average fixed-rate. So far that looks like a no-brainer, right?

The gamble
But there's a gamble involved, and ARM buyers can get burned as a result. With an ARM, your payments are lower for the first three or four years, and will stay low -- provided interest rates in general don't skyrocket. If they do, the lender typically will adjust your ARM rate upward by a maximum of 2 percentage points a year, and a max of 6 percent over the entire loan period.

An ARM that starts out at, say, 5.75 percent can increase to 7.75 percent in the second year, to 9.75 percent in the third year, and to 11.75 percent in the fourth year. Over that period your monthly payment would shoot up from $581 to $1,000.

On the other hand, when most interest rates are in a decline, such as during a recession, that tends to keep ARM rates low.

Mortgage Rates

At Smart Home Mortgage Loans, our refinance lenders specialize in providing low mortgage rate offers from 3-4 competing home loan specialists from across the country. All our refinance loan specialists are dedicated to finding the best mortgage loan with the best refinance rates, terms and costs to meet your unique financing needs. Welcome Homeowners! Are you shopping for a low mortgage rate? Let Smart Home Mortgage Loans help you. We can save you time, money, and headaches with our free California mortgage rate quote service. Simply fill out our Mortgage Rate form below & you'll be on your way to finding the best mortgage rates offered in your local area. Even a small difference in a mortgage rate can make a big difference in your mortgage payment!

We are here to help you clarify the often confusing mortgage loan process.

Many of the pages you will find here are tailored with the mortgage consumer in mind. Armed with this valuable information, you will have the power to become a more informed consumer and pay less with your lower mortgage rate!

Typical Mortgage Terms

• 30-year Fixed Mortgage
• 15-year Fixed Mortgage
• 20-year Fixed Mortgage
• 10-year Fixed Mortgage
• 1-year ARM
• 3/1 ARM
• 3/1 Interest-only ARM
• 5/1 ARM
• 5/1 Interest-only ARM
• 7/1 ARM
• 10/1 ARM
• 30-year Jumbo Mortgage
• 15-year Jumbo Mortgage
• 5/1 Jumbo ARM
• 5/1 Jumbo Interest-only ARM
• FHA Mortgage

Typical Refinance Terms

Question: What is a lock-in?

Answer: The lock-in represents the interest rate you choose and will be the interest rate used to factor your monthly payment. The lock-in secures the interest rate during the process of your loan approval as long as your loan is processed and closed prior to the rate expiration date. This date is given to you when you lock-in the rate.

Question: What is the difference between a fixed rate and adjustable rate mortgage?

Answer: With a fixed rate mortgage, the interest rate and payment remains constant over the life of the loan. Whereas, with an adjustable rate mortgage, the interest rate can either increase or decrease, based upon the terms of the loan. This could cause the monthly payments to increase in order to have the loan paid in full by maturity.

Question: What is a convertible mortgage?

Answer: A convertible mortgage allows you to convert your adjustable rate mortgage to a fixed rate mortgage for a flat fee during a specific time frame. This fee can range from $250 - $500 per lender.

Question: What is a balloon mortgage?

Answer: A loan with a fixed rate payment for the first five to seven years of the loan, then a lump sum payment is due on the balance of the loan at a specified date when the balloon loan matures.

Question: What is a conventional loan?

Answer: A mortgage not guaranteed by VA or insured by FHA, FMHA or State Bond Agencies.

Loan Programs & Options
Smart Home Mortgage Loans inc. offers many loan programs from the primary lenders in all 50 states. Our lending institutions provide home purchase, second home equity, mortgage refinancing, and refinance loans. Whether you are searching for conventional, non-conforming or sub prime refinancing, our company can connect you with the finest financing providers online.

FHA Home Purchase Mortgage Loans FHA Home Financing FHA Mortgage Refinancing Bad Credit Home Purchase Loans

FHA Loans Consolidate Debt No Income Check Loans Jumbo Mortgage Loans

Interest Only Balloon Mortgage Vacation Homes OK! Cash Out Refinance

New Home Purchase Fixed Rate Mortgages 100% LTV Financing First Time Home Buyers

80-20 Mortgages Bad Credit Loans OK! Adjustable Loans Condo's & Co-Op Loans

Second Home Loans Negative Amortization Mortgage Bad Credit Home Financing Manufactured Home Loans

Reverse Mortgage Loans Reverse Home Loans

Home Financing Basics
For those of you who didn’t get a finance degree from a graduate business school, we created this section so that average homeowners can understand the basic for refinance and purchase mortgage loans. Our site will provide you with mortgage references and relevant definitions for loan terms so that you can make wise finance decisions that involve residential mortgages.

Glossary Types of Mortgages What is Subprime Freddie Mac

Misc Terms Basics of a Mortgage Bankruptcy & Foreclosure Fannie Mae

Credit Ratings Credit Scores Credit Repair Ginnie Mae

Leading Rates Closing Costs No Income Verify Amortization Period

Treasury Securities Key economic statistics Other indexes Understanding Tax Deductibility