Posted on 03 September 2009
Tags: attractive option, closing cost, department of agriculture, insurance, loans, moderate income individuals, mortgage, new construction, property taxes, renovation, rhs, rural areas, rural housing service, u s department
RHS Loan
The U.S. Department of Agriculture offers a variety of programs to help low to moderate-income individuals living in small towns or rural areas achieve homeownership. The Rural Housing Service (RHS) helps qualifying applicants, who cannot receive credit from other sources, purchase modestly priced homes as their primary residence.
RHS Loans are an attractive option because:
- Minimal closing cost
- Low or no down payment
RHS loans can be used toward the purchase and renovation of a previously owned home or a new construction. Families must be able to pay their monthly mortgage, homeowner’s insurance and property taxes.
Posted on 03 September 2009
Tags: 30 year fixed rate, 30 year fixed rate mortgage, amortization, amortization period, borrowers, fixed rate mortgage, interest on the loan, interest rates, loan period, loans, mortgage interest rate, year fixed rate mortgage
Fixed Rate Mortgage
With a fixed rate mortgage, the interest rate does not change for the term of the loan, so the monthly payment is always the same. Typically, the shorter the loan period, the more attractive the interest rate will be.
Payments on fixed-rate fully amortizing loans are calculated so that the loan is paid in full at the end of the term. In the early amortization period of the mortgage, a large percentage of the monthly payment pays the interest on the loan. As the mortgage is paid down, more of the monthly payment is applied toward the principal.
30 Year Fixed Rate Mortgage
A 30 year fixed rate mortgage is the most popular type of loan when borrowers are able to lock into a low rate.
Benefits:
- Lower monthly payments than a 15 year fixed rate mortgage
- Interest rate does not go up if interest rates go up
- Payment does not go up, it stays the same for 30 years
Drawbacks:
- Higher interest rate than a 15 year fixed rate mortgage
- Interest rate stays the same even if interest rates go down
15 Year Fixed Rate Mortgage
A 15 year fixed rate mortgage allows you to pay off your loan quicker and lock into an attractive lower interest rate.
Benefits:
- Lower interest rate
- Build equity faster
- If interest rates go up, yours is fixed
Drawbacks:
- Higher monthly payment stays the same if interest rates go down
- Interest rate stays the same even if interest rates go down