| Salt Lake City Mortgage Options | | | | have to sell, refinance or convert to a traditional |
| Looking for a mortgage for your Salt Lake City | | | | mortgage if you can't pay the balance out of |
| real estate? Whether you're moving or simply | | | | pocket. Again, this can be a good option if you're |
| investing in Salt Lake real estate, you'll probably | | | | certain you'll be able to sell your real estate |
| need a Salt Lake City mortgage. It's important to | | | | before the term of the loan is up. |
| know and understand your options in a Salt Lake | | | | Interest-Only |
| City mortgage. Of course, professional mortgage | | | | The name of an interest-only mortgage is slightly |
| advisors can offer you more personalized help | | | | misleading. It sounds like you only have to pay of |
| than any other information or service. | | | | the interest, and none of the principal for your |
| Fixed Rate | | | | real estate. During the loan term, you make |
| A fixed rate mortgage is the classic home loan. | | | | payments in the amount of the interest on the |
| The interest rate is locked in over the course of | | | | loan, which is lower than a fully amortized |
| the loan--hence the name "fixed." The most | | | | payment that includes principal. After the first 5 to |
| popular fixed rate loans are for terms of 15 or 30 | | | | 10 years, the principal is due. This option can work |
| years, although other terms are sometimes | | | | well for people with income that fluctuates |
| offered. | | | | seasonally throughout the year or those who plan |
| Search Engine Marketing Specialist | | | | to sell the property for significantly more than the |
| Since 1995 SEO/SEM tools, training, and | | | | purchase price. |
| professional "full service" Search Engine Marketing | | | | Down Payment |
| help at very affordable rates. | | | | The down payment is the amount of money you |
| Typically, a fixed rate loan is good if you're | | | | pay at closing. This amount goes toward the |
| planning on owning your Salt Lake real estate for | | | | principal on your loan. While you can choose how |
| a while. Advice on how long "a while" should be | | | | much to pay in your down payment, until you |
| ranges from 3 to 7 years at a minimum. A fixed | | | | have paid off 20% of your house's value (with |
| rate is also a stable and attractive alternative | | | | monthly payments, extra prepayments and house |
| when interest rates are low. | | | | value appreciation), you usually have to pay a |
| Variable or Adjustable Rate | | | | private mortgage insurance (PMI) fee with each |
| With a variable or adjustable rate mortgage | | | | payment. |
| (ARM), the interest rate can change with a | | | | To avoid this extra monthly cost, you can get a |
| specified index, like the New York prime rate. | | | | second loan to cover the down payment in |
| Many ARMs begin with a short, fixed rate period, | | | | conjunction with your mortgage. There are many |
| ranging from 3 to 7 years. | | | | different ways to do this. One of the most |
| One advantage of an ARM is that is offers a | | | | popular is referred to as an 80/20 loan. An 80/20 |
| lower initial rate than a fixed rate mortgage. | | | | loan is actually two loans--one for 80% of the |
| However, that rate can go up after the initial | | | | home's value, and the other a "piggyback loan" for |
| fixed period. If you plan on selling your real estate | | | | the 20% down payment. Options vary, but the |
| within that fixed period, an ARM can offer you | | | | piggyback loan usually has a higher rate. It may |
| significant savings. | | | | also be an adjustable rate or interest-only loan, |
| Renegotiable Rate Mortgage | | | | like the mortgages described above. Other |
| A few brokers offer a renegotiable rate | | | | combinations include an 80-15-5 (80% mortgage, |
| mortgage. At specific points in the life of the loan | | | | 15% piggyback, 5% cash down payment), |
| (eg every 3 or 5 years), you can renegotiate the | | | | 80-10-10 and more. Typically, these monthly |
| rate with your lender. This is especially convenient | | | | payments are still lower than they would be if |
| if interest rates have fallen since the beginning of | | | | you had to pay PMI--but always double check. |
| your loan. | | | | Your Salt Lake City mortgage can fall into one or |
| Balloon Mortgage | | | | many of these categories. With a professional |
| A balloon mortgage offers you a shortened loan | | | | mortgage advisor, you can find the loan that's |
| term with lower payments. Typically 5 to 7 years | | | | truly right for your financial situation. A mortgage |
| in length, during the term of a balloon mortgage, | | | | advisor takes into account your financial situation, |
| you make payments that are similar to that of a | | | | income, budget and debt load to help you find a |
| 30 year mortgage. However, at the end of the | | | | loan that you can afford. |
| term, the balance of the mortgage is due. You | | | | |