Information, Insight, Advice.

10 Year Fixed Rate Mortgage

Everybody's heard of the 30-year home mortgage, and probably the 15-year mortgage, too. But did you know that there is a 10 year fixed rate mortgage? And for some, it can offer big advantages.If you're like most people, you refinance your mortgage for one main reason: to save money.

Even though the monthly payment on a 30-year mortgage will typically be much lower than with a shorter-term loan, the interest rate will be higher. So, you'll end up paying a lot more over the life of the loan in interest on a 30-year mortgage than you will on a 10-year.

Traditional wisdom says that if you've got fewer than 20 or 15 years left on your 30-year mortgage, refinancing probably should be avoided. That's because refinancing to another 30-year mortgage resets the clock on your mortgage.

But refinancing to a 10-year mortgage with a low interest rate could turn that logic on its head, because most people who only have 15 or so years left on their mortgage probably have an interest rate much higher than today's historically low rates, he says. Why? Interest rates were a lot higher 15 years ago, and homeowners who haven't refinanced at all could still be stuck with these high rates.

Do you want to move in the next few years, but can't sell your home because it's worth less than the amount you owe on your mortgage? Refinancing to a 10-year, fixed-rate mortgage through a program like HARP, a government program that helps homeowners refinance their underwater homes, is one move that has helped more than a few people in that same situation.

How can this help? By refinancing to a 10-year mortgage, you can build equity faster, and own enough of your home so that it’s not underwater anymore when it comes time to sell.

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Buyers Need To Move Fast

Foreclosures are being listed at far less than what they likely eventually will sell for -- a marketing strategy that generates high interest and multiple bids, some say. As such, buyers of foreclosures need to be prepared to move quickly and come up with a lot more money.Some home buyers who bid on foreclosures have to learn the hard way just how competitive snagging a foreclosure bargain can be. it usually takes two or three times before they learn how to get tough to get the house they really want.

9 States Where Foreclosures Are Dropping The Most

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Types of Home Ownership

In Minnesota when  two or more people buy a home together they can choose joint-tenancy or tenancy-in-common. Joint tenancy is when 2 or more people own  equal shares of a home. If an owner dies, ownership is transferred to the remaining owner(s). This is called the “right of survivorship.” Tenancy-in common is when 2 or more people own a home. Ownership does not have to be equal. If an owner dies, ownership is transferred to the person(s) named in their will.

Who is legally responsible for paying the mortgage? Anyone who applied for the mortgage loan is considered a borrower. Every borrower must be listed on the mortgage and is legally responsible for paying the mortgage.

Who has ownership rights? The deed transfers ownership from the seller to the buyer. The mortgage obligates payment of the mortgage loan. Anyone named on the deed or mortgage has ownership in the home and must agree before the home can be sold or refinanced. Persons NOT listed on the mortgage, CAN be named on the deed.

Do spouses have ownership rights? In Minnesota spouses are legally entitled to ownership and are not required to be listed on the mortgage or deed. This also applies if the home was listed prior to marriage or if the marriage dissolves.

What happens if an owner dies without a will? For tenancy-in-common, probate court transfers ownership to their heirs. With joint tenancy, the ownership is automatically transferred to the remaining owner. A will does not change the right of survivorship.

For additional information contact me or the

Minnesota Homeownership Center: 651-659-9336 or 866-462-6466 or www.hocmn.org 

 

 

 

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