Arizona Mortgage Brokers AZ Lending Experts

CAVE CREEK, Ariz. - Aug. 17, 2015 - PRLog -- Arizona Mortgage Broker AZ Lending Experts

There are many types of mortgages that you can get.  It is important that you get a mortgage that fits your individual needs.  An experienced mortgage broker, like AZ Lending Brokers, can explain the different types of mortgages, and provide you with the advantages and disadvantages of each type of mortgage, so you can make sure you are getting the mortgage program that best fits your needs.

A fixed-rate mortgage, also known as a vanilla wafer mortgage loan, is a fully amortizingmortgage loan. The interest rate on the loan remains the same through the entire term of the loan, therefore your monthly mortgage payment remains constant. With other types of loans the interest rate may adjust or float. With a fixed rate loan, payment amounts and the length of the loan remain the same throughout the term of the loan, and the borrower benefits from a consistent, single payment and the ability to design a budget based on this fixed cost.

Other forms of mortgage loans include interest-only mortgages, graduated payment mortgage, variable rate mortgage (including adjustable-rate mortgages), negative amortization mortgage, and balloon payment mortgage. Unlike many other loan types, fixed rate mortgage interest rates and loan duration is constant from beginning to end.

Finding the right mortgage can be a challenge. At AZ Lending Experts, a licensed Arizona Mortgage Broker, you can have all the different types of home mortgages explained to you, and they will help tailor a loan program that best suits your needs.  When looking for the lowest rates available, and a wide range of mortgage options, AZ Lending Experts, at www.azlendingexperts.com can provide you with a wide list of options.

Fixed-rate mortgages are characterized by amount of loan, interest rate, compounding frequency, and duration. With these values, the monthly repayments can be calculated

Historically, fixed rate mortgages have been found to be typically more expensive than adjustable rate mortgages. Due to the intrinsicinterest rate risk, long-term fixed rate loans can be issued at a higher interest rate than short-term loans. The relationship between interest rates for short and long-term loans is represented by the yield curve, which generally slopes in an upward curve (the longer term loans being more expensive). The opposite circumstance is known as an inverted yield curve and occurs less often.  An online mortgage calculator can allow you to see the difference in payments with different types of loans.

The fact that a fixed rate mortgage has a higher starting interest rate does not necessarily mean that this is aninferior form of borrowing compared to the adjustable rate mortgages.  Especially with today’s low interest rates.  You can lock into a 15 or 30 year fixed rate mortgage at the lowest rates in history, and find yourself with a great mortgage option. In an adjustable rate mortgage, if interest rates rise, the adjustable rate mortgage cost will be higher while the fixed rate mortgage loan will remain the same. In effect, a lender has agreed to take the interest rate risk on a fixed-rate loan. When interest rates are higher, some studies have shown that the majority of borrowers with adjustable rate mortgages save money in the long term, but that some borrowers pay more. The risk is the volatility of the interest rate.  The price of potentially saving money, in other words, is balanced by the risk of potentially higher costs.

For borrowers wisely seeking out a reputable Arizona mortgage broker AZ Lending Experts fits that description.

Richard Simon

4500 S. Lakeshore Dr., Suite 650 | Tempe, AZ 85282

480-649-3825