Mortgage
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Understanding Mortgages
from home refinance to home purchase, lmb has you covered
Pros and Cons of the Different Loan Types
15 Year Fixed Rate
Pros
- Lower interest rate
- Lower amount to pay back
- Home paid off in only 15 years
Cons
- Higher monthly payment
30 Year Fixed Rate
Pros
- Lower monthly payment
Cons
- Higher interest rate
- In debt for 15 more years
- Higher amount to pay back
5 Year Adjustable Rate
Pros
- Lower monthly payment for the first five years
- Perfect if your living situation isn’t permanent
Cons
- Monthly payments after first 5 years will be unpredictable (no fixed interest rate)
Frequently Asked Questions
Learn the mortgage basics
What is Home Refinancing?
Refinancing is the act of getting a new mortgage to replace the original one, usually done to obtain a better interest rate and term.
Why should you refinance your home?
Refinancing can be a great way to get a lower interest rate to lower your monthly payment or pay less over the life of the loan.
What is a home loan?
Known as a mortgage, a home loan is a loan that is secured by property or real estate. In giving the loan, the lender is promised that the buyer will pay back the amount borrowed within a particular timeframe and owns the property until it is completely paid off.
What are different types of home loans?
Home loans can come in a few varieties, but the most common are a fixed-rate loan and an adjustable rate loan. Other types include an FHA loan, VA loan, USDA loan or a Bridge loan
Top Mortgage Reads
How Much Can You Be Saving From A Refinance?
Americans are averaging a mortgage debt of $201,811 across the country according to a recent report by Experian. Many will argue this is rather too low or too high depending which state and city you live in. Although Americans have such high mortgage debt, they often...
Reverse Mortgage vs. Cash Out Refinance
There are many differences between a reverse mortgage and a cash out refinance. While both programs use home equity to get cash back, the reverse mortgage is specifically for senior citizens. What is a Reverse Mortgage? Home Equity Conversion Mortgage is the formal...
What is a Jumbo Loan?
A jumbo loan is exactly what it sounds like. It’s a loan that exceeds conventional loan (ex: 30-Year and 15-Year fixed rate mortgages) limits determined by the Federal Housing Finance Agency (the FHFA). This makes them a nonconforming loan. What Does a Typical Jumbo...
Should I Lock in My Mortgage Rate Today?
Making the leap into homeownership is fraught with big decisions and scary possibilities. Understanding everything that goes into getting a mortgage is like having to learn a new language. You want to make sound decisions, after taking this financial leap is a...
Budgeting for a House: How Much House Can You Afford?
Buying a home can be one of the most exciting ventures in a person's life. Even though 1 in 3 millennials under age 35 owns a home, 1 in 3 regrets it. The reason for that regret, however, is because many homebuyers forget to account for things like closing costs and...
How Much Down Payment Do You Really Need?
Can You Buy a House with No Down Payment? Buying a house can be part of the American dream. Making that home purchase, especially as a first time home buyer, makes you feel like you are a successful adult who can put down roots and make lifelong memories in your...