There's a mortgage product to meet almost any need
From first-time buyer programs to reverse mortgages to home equity lines of credit (HELOCs), today's lenders offer products that allow borrowers to:
Buy property with a low (or no) down payment
Build a house
Consolidate credit card debt
Exchange home equity for cash
Purchase rental housing
Refinance to a better interest rate
Supplement monthly income
Renovate their residences
Types of mortgage programs
Consumers should discuss their options with mortgage lenders to come up with the program that best meets their needs. Home mortgages can be classified in several ways:
Fixed rate or adjustable rate
Conforming or jumbo loan amount
Government or conventional
Purchase or refinance
Prime or sub-prime
Traditional (forward) or reverse
Construction or permanent
First or second mortgage
What to do before applying for a mortgage loan?
Once they have selected a program, borrowers should compare mortgage rates and terms. That's easy to do online with sites like LendingTree.com. When comparing mortgage programs, consumers should get the same information from each lender. This includes interest rate, duration of interest rate (Does it adjust? When? By how much?), loan term (15 year, 30 year, etc.), lender fees and 3rd party charges, APR, features like interest-only payments or prepayment penalties, and mortgage insurance or funding fees.
It's important when shopping for a mortgage to get all home loan quotes at approximately the same time. Mortgage interest rates change constantly, because they are affected by the prices of bonds and mortgage-backed securities (MBS), which are bought and sold like stocks. Global economic news, Treasury auctions and decisions by the Federal Reserve can cause mortgage rates to move up and down very suddenly. Just as stock prices change all day long, so can mortgage rates. This means a quote from Lender A on Monday can't reliably be compared to one from Lender B on Wednesday. LendingTree allows consumers to easily compare real-time quotes from competing mortgage lenders, helping them make informed choices and save money.