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Fixed Rates - Fixed Interest Rate Mortgage
The fixed rate mortgage is the most popular, most basic and simple mortgage loan available. That's why most people choose it because it makes the most sense. Most people don't want their payment to flucuate so they account for a certain number and keep it. I agree with it and think it's the right move in today's economy, but I also think everyone should understand the other mortgage loan types available such as ARM Rate, or Adjustable Rate Mortgages, and Interest Only Loans. Some people hear on the news that interest only loans are bad because you mortgage loan jumps at a certain point, but they all serve a good purpose for some situations.
1) Interest Only loans could help a contractor or handy man buy a house to do some remodeling and flip it. They don't care about paying down pricipal, they just want the lowest monthly payment for a higher borrowing power.
Try using my mortgage calculator to figure out your borrowing power and maybe you can start that business sooner than you thought! Use you buying power to your advantage; ask yourself, how much will they let you have? Then make an investment. Think BIG!
2) ARM Rates used to be very popular when interest rates were higher near 15% because it's so high that everyone figured they'd go back down, and they did. Even the people with fixed rates were able to refinance and get a better interest rate, but with closing fees to the bank.
Tip: They bank will even give you a personal loan with a high interest rate of 13-14%. It sounds very high, but it's not that bad because you can start your own business on ebay or something. Let it grow from there. Use my mortgage calculator to figure out what you can borrow. Let's say they give you $10,000 at 14%, your monthly payment would only be $232.68. That's the payment, forget about the interest rate. Take 3 months of payments and put them aside so that you have 3 months to start making $300.00 per month to cover that payment. Once you learn about the business world a little bit you can take the next step. Take another good look at a mortgage calulator to see where you stand with the bank. You should also get to know you debt to income ratio before seeing the bank to know where you stand when you walk in. Now here's the good part; now that your making an extra $300.00 per month the bank would allow you another $10,000. Then you have twice the buying power and you could shop the product a little better and make more margin. | 
