A mortgage is a complex part of a real estate transaction. The variety of available products is incredible:
Conventional Mortgage Products
Fixed 30 year term: the mainsteam way to pay for a home - or other building
Fixed 15 year term: provides a small improvement in interest rate over the Fixed 30 year mortgage
Adjustable Rate: interest rate of the loan is tied to an index, and will vary from year to year. As will the payments.
Contemporary Mortgage Products
Interest Only: if you want to stay in a home for only a "few" years, this product may make sense: it will reduce your payments.
Buydown: allows a home owner to have a loan with an artifically low rate for one or two years, as an inducement to buy. This requires a third party contribution to make it work. Monthly payments can be 1/3 lower than for a Fixed 30 year.
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Paul Martin 219-873-4999 firstname.lastname@example.org
Premium Mortgage, Inc. An Illinois Residential Mortgage Licensee