You PMI is an insurance policy that you purchase to protect the bank or mortgage company against the loss of you being foreclosed on. Generally, once you get to the point where you owe 80% or less than the value of the property financed, you will no longer be required to pay for PMI. You will have to question this with your bank continuously as they will not automatically remove this coverage. PMI helps you in absolutely no way possible. If you are foreclosed upon and your home is taken, the PMI company will pay the bank for their losses, take your home, then sue you for their losses. Get out of this asap.
A fixed rate mortgage has its interest rate fixed (ie. stays the same) over the life of the loan. An adjustable rate mortgage (also called variable rate mortgage in Australia) has an interest rate that can be changed at any time by the lender. For example, if central bank interest rates go up then a variable rate loan will usually go up too. If the interest rate is fixed, then the lender can't change the rate even if their funding costs rise.
There are many benefits to having a fixed rate personal loan. One of the benefits is the your monthly payment is always the same, which is good for planning your budget. Another benefit is the interest rate will also never go up, which will definitely save money.
If you are not planning to move anywhere else and want to know what your payment will be every month, fixed rate is the way to go. If you are planning to move within 5 years, you may want an adjustable rate which fluctuates with the market rates. If you are planning to move within 5 years, but do not want a fluctuating rate, a balloon loan may be the way to go. The balloon loan offers a lower, fixed rate for a few years with a balloon (large) payment due at the end of the loan. If you need to borrow more than $252,700, you will need to ask about a Jumbo Loan.
This is a case where you borrow some money and agree to a rate of interest on the repayments over the life of the loan that will not change, no matter what the actual interest rate in the country does. The advantage to you is that you know exactly how much you will be paying each month. The advantage to the lender is that the rate of interest you agree to is usually higher than the country rate at the time you take the loan out. The alternative would be a variable rate loan where the interest you pay may go up or down as you pay the loan off each month, tracking that of the market in your country.
In general, a low interest loan is better than a high interest loan. The only time this may differ is if you are getting a variable rate loan, which may become lower than a higher fixed rate loan over time. However, this can be hard to predict, so it is always better to go with the low interest rate.
In a fixed rate loan, the loan fee on the loan charged by the financial institution is consistent over the life of the loan. You have to go for a fixed rate loan simply within the event that you feel that the rate of interest prevailing within the business sector have touched absolute bottom and the costs can simply move upwards.
A fixed rate mortgage has its interest rate fixed (ie. stays the same) over the life of the loan. An adjustable rate mortgage (also called variable rate mortgage in Australia) has an interest rate that can be changed at any time by the lender. For example, if central bank interest rates go up then a variable rate loan will usually go up too. If the interest rate is fixed, then the lender can't change the rate even if their funding costs rise.
I'm not sure it's ever "better". If you have a crystal ball, and can predict exactly what the economy and banking are going to do over the life of your loan, you might well see that a variable rate loan would be in your best interest. But while you may pay out more in the long run, a fixed rate loan is much safer. There's a lot to be said for that. And if, perchance, you are getting ready to buy a house right now, for heaven's sake go with a fixed rate loan! You can't lose!
There are many benefits to having a fixed rate personal loan. One of the benefits is the your monthly payment is always the same, which is good for planning your budget. Another benefit is the interest rate will also never go up, which will definitely save money.
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Auto loan are fixed rate loans. The only way to change them is to go to another lender and refinance for a lower rate. I recommend shopping for the best rate before you start and would advise going with your personal bank over financing through the dealer.
If you are not planning to move anywhere else and want to know what your payment will be every month, fixed rate is the way to go. If you are planning to move within 5 years, you may want an adjustable rate which fluctuates with the market rates. If you are planning to move within 5 years, but do not want a fluctuating rate, a balloon loan may be the way to go. The balloon loan offers a lower, fixed rate for a few years with a balloon (large) payment due at the end of the loan. If you need to borrow more than $252,700, you will need to ask about a Jumbo Loan.
This is a case where you borrow some money and agree to a rate of interest on the repayments over the life of the loan that will not change, no matter what the actual interest rate in the country does. The advantage to you is that you know exactly how much you will be paying each month. The advantage to the lender is that the rate of interest you agree to is usually higher than the country rate at the time you take the loan out. The alternative would be a variable rate loan where the interest you pay may go up or down as you pay the loan off each month, tracking that of the market in your country.
In general, a low interest loan is better than a high interest loan. The only time this may differ is if you are getting a variable rate loan, which may become lower than a higher fixed rate loan over time. However, this can be hard to predict, so it is always better to go with the low interest rate.
Yes, you can convert your HELOC into a fixed home equity loan. And, no you don't have to go through your current lender. There are also HELOC's with a fixed rate option which means that you can select expended amounts of your HELOC for the lender to assign a fixed rate to it. For example, let's say that you take out $100k at a variable rate of 7%, then you use $10K, but rates are continuing to increase. You can ask the lender to place the $10k on a fixed rate that fully amoritizes and leave the $90K on the variable rate. Hope that helps. I'm currently considering this program with Washington Mutual. I think that Well Fargo and Union bank also have similar options. Perhaps a bit piciune - but I believe the term convert would mean change the terms of the exisiting loan - which is only done with the same lender. Getting another lender involved, would require a new or refinance, frequently needing the exisitng loan to be paid off with the proceeds.
You can try refinancemyarmloan.com as they specialize in helping people with ARM loans. If you are a veteran, go to freevaloan.com and get a jumbo VA loan at no cost.
depends.... Most lenders are 620 min for a FHA/VA/USDA loan with 3.5% down. You can go for a conventional loan, but with a 674 you would want to put down 20% to get out of MI and get a good rate. The best option for you would be a VA loan if have ever served in the military, or you could do a USDA loan if you are looking in a rural area. VA- 100% fin great rates no PMI USDA- 100% fin great rates no MI