Little Rock Home Mortgage

Fixed Rate Home Mortgage

2010-03-10T16:59:00.002-06:00

Most people have a fixed rate home mortgage in mind when they are applying for a home loan. They are the simplest and most common product on the market today. And probably have been since the inception of mortgage lending. As you might imagine by its name, with a fixed rate home mortgage the interest rate you pay will never change over the life of the loan. There is no need to worry about or attempt to calculate things like indexes, caps, margins or change dates because those terms apply to adjustable rate loans and are not applicable to fixed mortgages.

The primary benefit of the fixed rate home mortgage is the stability of the monthly payment. While the principal and interest calculations will vary. The payment that the borrower makes every month will remain constant until the loan is paid off. Should rates go up, adjustable rate borrowers will fell the consequences through higher monthly home mortgage payments, while fixed-rate home owners can relax because their payments doesn't change. Fixed-rate borrowers don't need to concern themselves with which way the market is headed, though it’s properly a good idea to pay attention in case a drop in rates presents an opportunity to refinance. But for the most part, it's a good stable choice that makes it not only popular with the mortgagors' but the mortgagees’ as well.

While the amortization calculations of a 30 year fixed rate home mortgage make it the most common. The fact that the bulk of the monthly payments are applied to interest payments and not principal reduction is a primary factor for the popularity of 15 year fixed rate home mortgages. These loans as the name implies are paid off over 15 years. While the monthly payment may be greater due to the shorter amortization period, the interest paid is reduced greatly. Many home mortgage lenders also have 10, 20, and 40-year fixed mortgages too, but they're far more uncommon.

The major down side of a fixed-rate home mortgage the way I see it is the premium that is added to the interest rate visa vie the arm. If the intention is to only borrow the money for 5 years, why pay the premium for a 15 or 30 year fixed rate home mortgage when a 5 year arm is available with a better rate?

Little Rock Home Mortgage in a Nut Shell

2009-09-08T10:56:00.002-05:00

Nestled along the shores of the Arkansas River, Little Rock, the capitol of Arkansas is a special place. Centrally located where the southwest meets the southeast, its characteristics include a diverse population, healthy economy and cultural diversions galore. The Little Rock downtown has witnessed a reassurance with the development of the River Market District, offering new housing opportunities in this urban setting, creating a unique place to live, shop, work and play.

Like most of the country at the turn of the century. Little Rock was experiencing strong economic growth and a robust housing market. With housing values increasing and financing easy the market was go go go. Then came 2007 with the mortgage meltdown and popping housing bubble, the positive real estate market everybody was used to became a thing of the past as the economy slid and tanked into a hard recession. While Little Rock has not been as hard hit as some other areas of the country, she has not escaped untouched. We have experienced a weakened real estate market while we hope that the recession has bottomed out.

As we entered the summer of 2009 there is no question that there have been vast institutional changes that have affected the real estate market in general and the mortgage industry in particular. The home price freefall appears to have stopped and may even be showing some signs of positive movement as many experts project positive growth for Little Rock in 2010.

While there remains a great deal of financial uncertainly. There is one certainty you can take to the bank. The mortgage industry has changed drastically. The Subprime product is a thing of the past. A-alt is still around but you would be hard pressed to find it. Same goes for Jumbo loans. What was once free flowing easy credit has become a industry that has tightened its belt and gone back to basics. An industry dominated by Freddie Mac, Fannie Mae and FHA, with a smattering of portfolio lenders thrown in for good measure.

This is where Little Rock Home Mortgage comes to the rescue. We are founded on the principal of providing up to date resources on real estate and mortgage related trends. On both the national and regional level with an eye towards their effects on the Little Rock home mortgage market.

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2009-09-07T16:20:00.001-05:00

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About

2009-09-07T14:50:00.002-05:00

Little Rock Home Mortgage hopes to provide an extraordinary perspective on the Little Rock real estate market. We appreciate how different the market is since the 2007 financial upheaval, and that it has become necessary to unearth and stay ahead of new trends and other modifications to the housing and mortgage industry. It is our intention to keep you informed of all matters relevant to the Little Rock market. We will be exploring mortgage home loans, refinancing, adjustable rate products, qualification issues, just to name a few. Please feel free to use of the blog as we add to it, and should you have any questions or wish to add to the conversation you can contact Little Rock Home Mortgage by way of email or comments.