A major aspect of financing a home is choosing the “term” of a mortgage. But what exactly are mortgage terms? While terms vary by mortgage lender, many are shared across the board. The more you know about the terms of a mortgage, the better prepared you’ll be to pay it back.
In a mortgage, you can consider the term to be the lifetime of a loan. A term is defined as the period of time your mortgage contract lasts. This also means the amount of time you have to pay back the entirety of the loan.
What are some common mortgage terms?
Every mortgage is a bit different, but there are some common terms many mortgage lenders share. One key factor is the type of mortgage: either fixed rate mortgages or adjustable rate mortgages. These different types of mortgages typically have different terms.
A fixed rate mortgage is the most common type of home loan in the United States. These mortgages are long-lasting, often with a term of 30 years. Some fixed rate mortgages have terms as low as 10 years, but come with much higher monthly payments.
Adjustable rate mortgages, or ARMs, also typically last 30 years. However, due to the nature of the fluctuations in interest rates, many ARMs may list their terms as short as six months. This is because they offer low interest rates at the beginning of the loan that gradually increase over set time periods (for example, after three years).
Many things combine to determine your monthly mortgage payment. In addition to the terms of the mortgage loan, your financial situation and the property itself can also affect your payments. The five most important factors in a mortgage application are:
A mortgage lender uses all of this information to calculate and present a loan offer. Certain loan terms might change depending on how you meet specific criteria - a lower interest rate for a higher down payment, for example.
When shopping for a mortgage, compare terms and details carefully. The more information you have, the better decisions you can make for your financial future.
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First Albert would like to thank you for the opportunity to offer his services.
Albert originally from New York City enlisted to the U.S Marine Corps from 1992 to 2004 receiving the Navy & Marine Corps Achievement Medal Combat Valor serving in the Iraq War and earn a Bachelor Degree in Business Administration from University of Hawaii. Started getting involved in the Real Estate business from 2004 to present as a full time agent. Albert have found home owners and buyers really want two things from their REALTOR®, Executive Service and Results....
Albert specializes in the Los Angeles County, Ventura County and Orange County area and licensed in California. His services include being bilingual in Spanish, making it a point to keep his clients well informed at all time.
Albert vision of commitment is based on hard work, tireless determination, and a genuine love of helping people reach their goals with a successful tenure in the real estate industry. Albert know by sharing a strong work ethic, a tireless drive to succeed and a dedication to achieving goals, that anything in life is possible. For Albert, it is a Matter of Duty.
Albert's skills are Excellent Communication, Great Analytical, Critical Thinking ( thinking outside the box), Problem Solving Abilities, Strong Time Management, Organizational, Public Speaking, Negotiator, Team Player, Technology User.
That way, when you do meet, Albert can place his full concentration on your special needs and what's most important to you and your family. Together you and Albert will work as a team.
Albert is really looking forward to the very special opportunity to serve you in your Real Estate needs.
When the time comes for your next Real Estate decision, give Albert a call for a FREE consultation. You'll be glad you did.
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