Article Categories
» Arts & Entertainment
» Automotive
» Business
» Careers & Jobs
» Education & Reference
» Finance
» Food & Drink
» Health & Fitness
» Home & Family
» Internet & Online Businesses
» Miscellaneous
» Self Improvement
» Shopping
» Society & News
» Sports & Recreation
» Technology
» Travel & Leisure
» Writing & Speaking

  Listed Article

  Category: Articles » Finance » Mortgages » Article

Mortgage rates guide

By Mansi Gupta

The low interest rates, the easy repayment options with large time periods and its easy availability are some of the major factors behind the pristine esteem gained by the Mortgage loans.

Mortgage loans are basically long term loans that are provided for a period of 15 to 20 years by the federal government or private lending institutions to assist you to purchase a house. The time period for which these loans are extended can be modified according to the borrower's needs. For instance, some mortgage loans can be limited to a period of 5 years whereas some can extend up to 30 years. However, the time period also depends upon the amount for which loan has been taken. For very small loans the time period cannot be extended beyond a limit.

The rate of interest for mortgage loans can be of two kinds, fixed as well as floating. The basic difference between these two types of interest rates is that, under fixed interest rates the monthly installment that has to be paid by the borrower remains the same irrespective of the changes in the economy. Whereas, under a floating interest rate mortgage loan, the interest rate on the amount for which the loan has been taken and thereby the monthly installments can increase or decrease depending upon the fluctuations in the economy. As a rule the fixed rate mortgage loans carry a higher rate of interest than the floating rate mortgage loans. This is so because they are very secure and don't carry the risk element that the floating rate mortgage loans do. Thus, although the fixed rate mortgage loans can seem to be costly in the beginning, they prove to be beneficial in the long run.

There are many factors that can affect the mortgage rates. Some of these factors are under the control of the borrower and some are not. Thus, a borrower should be aware of all those factors that are under his command and take every necessary step to ensure that he gets the best deal. Some of the major factors that influence the mortgage rates are: whether it is a fixed rate or a floating rate mortgage loan, the amount for which the loan has been taken, life of the mortgage loan, income of the mortgage borrower, amount of down payment and the closing costs.

It is recommended that a borrower should always opt for fixed rate mortgage loans. Secondly, he should pay down as much as he can for the down payment to minimize the amount for which the mortgage loan is taken. By minimizing the amount needed for the home mortgage, one can minimize the amount of interest paid back over time. If the borrower can afford the monthly installment involved then he should always go for the minimum possible time for the life of a mortgage loan as the length of the mortgage loan can significantly reduce the interest rate on it. Additionally, the borrower should also consider refinancing his first home mortgage or opt for a second home mortgage to pay off the first home mortgage in order to obtain better rates as time goes on.
About the Author
Mansi gupta recommends that you visit for more information on Mortgage rates

Article Source:
If you wish to add the above article to your website or newsletters then please include the "Article Source:" as shown above and make it hyperlinked.

  Some other articles by Mansi Gupta
Traveling tips in Europe
Europe has always been a dream destination for tourists. With high skyscrapers, world's most beautiful beaches and rich cultural legacy, there is nothing more to desire form a perfect getaway destination. ...

Southern Comfort in elegant limousines
Limousines are the last word in elegant road travel. There are many services across America that run chartered services and you can charter limousines from them during your stay in the city. ...

The Importance of Multivitamins and Vitamins for Women
Whether you're trying to have a baby, already pregnant, going through menopause or worried about osteoporosis, it's worthwhile for you as ...

Ma Huang - Chinese herb
Ma Huang, the native-Chinese herb used in fat-burning supplements and also known as Ephedra, has been used as a natural treatment for a variety of illnesses ...

Hoodia - what it is, what it is used for?
Deep in the Kalahari Desert in South Africa a prickly like plant called Hoodia grows that could literally take your appetite away. Although this plant has been gathered and eaten by local habitants for ...

Student loan consolidation guide 101
The constantly escalating fees as well as the competition in the field of higher education have made the life of a student burdened by ...

  Recent Articles
Should I Refinance My Adjustable Rate Mortgage?
by RJ Baxter

The 'New Congress' Fiddles Away Valuable Time… As The 275,000 Insurable Limit For Home Equity Conversion Mortgages (Reverse Mortgages)
by Dale Rogers

The UK Consumer's Guide to Shopping for Mortgages Online
by Mary Simone

Online remortgage quotes Are Available within Least Time
by George Cummings

by Ismael D. Tabije

Low Mortgage Rates
by Kuntal Mehta

Interest Only and Second mortgage rates
by Kuntal Mehta

Adjustable Rate Mortgages
by Nathen Jones

Fast-tracking to Mortgage-free
by The House Team

The Mark Is Selected…The Fix Is In…Sting Underway
by Dale Rogers

Tips to find Bad Credit Mortgage Refinance Loan.
by Gerald Bouthner

Second Mortgage loans - Is It Better Second Time Around ?
by Lee Van

Can't connect to database