What Is a Fixed Rate Mortgage?
Ready to buy a home? Learn what a fixed-rate mortgage is and how it compares to its adjustable-rate mortgage counterparts. A fixed-rate mortgage, which is one of the most basic and popular types of mortgages, has an interest rate that is set when the loan is originated and does not change over time. “Fixed rate” only defines the type of loan and not the terms. For example, most fixed-rate mortgages have a duration of 15 or 30 years, but some lenders offer terms of 10, 20 or even 40 years. Occasionally, lenders offer fixed-rate mortgages with a term of five or seven years with a balloon payment for the balance due at the end. As you shop for your new home, learn more about fixed-rate and other types of mortgages so you are sure to make the right choice for your financial situation.
What is a HARP Mortgage?
Is your current mortgage underwater? Discover how a HARP refinance can help you to refinance your loan and keep your home. What is a HARP mortgage? In response to the number of foreclosures after the housing bubble burst in 2008, the Federal Housing Finance Agency started the Home Affordable Refinance Program (HARP). This program was designed to help homeowners who are current on their mortgage payments but are unable to refinance since the amount owed on the loan is more than the value of their home, known as “underwater.” The HARP program is set to expire at the end of 2016 unless Congress intervenes, but that still leaves plenty of time for eligible homeowners to refinance their homes.