homeowner loans 6

If you live in Florida and are buying a home for the first time, you qualify for the term, 'FL first time home buyer'. If you are a FL First time home buyer looking for a good mortgage loan that will be easy to pay off, you will need to do quite a bit of research. This research must be done before you even contact a mortgage lender or broker. You need to get yourself acquainted with the different mortgage loan types before you contact a broker so that you can choose one that best suits you.

Fixed Rate Mortgage Loans

The fixed rate mortgage is a mortgage loan that will have the same rate you get initially throughout the term of the mortgage.

The rate given to you will be based on your credit score and the present market rates. You can get a fixed loan mortgage for a period of 15 years, 20 years, 30 years or more depending on your payment ability.

There are quite a few advantages with fixed rate mortgage loans. For instance, you can be sure about your monthly payments since they will always be the same because the interest rate will not change. Secondly, since the rates are low now, it is best to get a fixed rate mortgage since you will have a low rate for the entire term of the mortgage. There are a few disadvantages though. If you plan to keep the house for a period of less than 5 years then getting a fixed rate mortgage is not sensible since you can get lower initial rates with a mortgage buy down or an adjustable rate mortgage. Do not get a fixed rate mortgage if you are planning to sell the house within 5 or 7 years.

Adjustable Rate Mortgage

The second type of home mortgage is the adjustable rate mortgage. An adjustable Rate Mortgage is a loan where the rate of interest fluctuates according to the market rate. The rate of interest will change as the term of the loan continues and therefore your monthly payments will depend on the current market rate. The interest rate will remain fixed for the initial period of the loan. (3 or 5 or 7 years) the rate will then change based on the current market rate.

The advantages of adjustable rate mortgage are the interest rate in Adjustable Rate Mortgage is less than the normal rate you get on a fixed rate mortgage loan. If you are planning to keep a house for not more than seven years, then this loan type is a good option. The downside is, if you are planning to keep your house for more than 10 years, getting an Adjustable Rate Mortgage can be a little risky since you don't know how much the interest rate will go up by.

There are many other types of mortgage loans out there from which you can choose the one which is most suited to your financial situation. For instance, if you are someone who gets paid your whole years salary at one time you can opt for an Interest only Mortgage Loan. You can also get a mortgage buy-down in which you have to pay a certain fee in order to lower the interest rate for the first few years.