Comments on: Budgeting Your Money and The Financial Benefits of a Fixed-Rate Mortgage http://www.mint.com/blog/finance-core/home-budget-the-financial-benefits-of-a-fixed-rate-mortgage/ The blog of the free, simple personal finance solution. Track all your spending automatically, find the best deals, save more money. And save the world. Fri, 20 Nov 2009 20:48:42 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Robert http://www.mint.com/blog/finance-core/home-budget-the-financial-benefits-of-a-fixed-rate-mortgage/comment-page-1/#comment-31762 Robert Mon, 01 Jun 2009 07:56:56 +0000 http://www.mint.com/blog/finance-core/the-financial-benefits-of-a-fixed-rate-mortgage/#comment-31762 I agree that fixed rate mortgage are the way to go. As an investor you can not rely on luck alone you need to determine what your cost and revenue are. I agree that fixed rate mortgage are the way to go. As an investor you can not rely on luck alone you need to determine what your cost and revenue are. ]]> By: Felipa http://www.mint.com/blog/finance-core/home-budget-the-financial-benefits-of-a-fixed-rate-mortgage/comment-page-1/#comment-28254 Felipa Thu, 25 Dec 2008 04:02:29 +0000 http://www.mint.com/blog/finance-core/the-financial-benefits-of-a-fixed-rate-mortgage/#comment-28254 Great tips, thanks! Great tips, thanks! ]]> By:   Foreclosure Story, Mortgage, Saving Tips, Used Cars: My Weekly Finance Roundups by FILAM Personal Finance http://www.mint.com/blog/finance-core/home-budget-the-financial-benefits-of-a-fixed-rate-mortgage/comment-page-1/#comment-1848   Foreclosure Story, Mortgage, Saving Tips, Used Cars: My Weekly Finance Roundups by FILAM Personal Finance Mon, 23 Jul 2007 05:02:19 +0000 http://www.mint.com/blog/finance-core/the-financial-benefits-of-a-fixed-rate-mortgage/#comment-1848 [...] The Financial Benefit of A Fixed Rate Mortgage at Mint. Aside from the fact that you won’t experience a payment shock, which normally happens for ARM borrowers when the interest rate resets, Mint discussed the three advantages of the fixed rate mortgage: decreased risk, secure long term planning, and protection against inflation. [...] [...] The Financial Benefit of A Fixed Rate Mortgage at Mint. Aside from the fact that you won’t experience a payment shock, which normally happens for ARM borrowers when the interest rate resets, Mint discussed the three advantages of the fixed rate mortgage: decreased risk, secure long term planning, and protection against inflation. [...] ]]> By: caroline http://www.mint.com/blog/finance-core/home-budget-the-financial-benefits-of-a-fixed-rate-mortgage/comment-page-1/#comment-1781 caroline Fri, 20 Jul 2007 18:26:59 +0000 http://www.mint.com/blog/finance-core/the-financial-benefits-of-a-fixed-rate-mortgage/#comment-1781 @antoniusc: there are a lot of different factors which determine the type of loan that is right for you. for instance, how long do you plan on living in your home? if it's less than 5 years than a shorter term fixed loan may be something you might consider. in the past many people opted for an *interest-only* mortgage especially in states like California where real estate prices were appreciating in the double-digits and everyone was building-up lots of equity in their properties. although the principle of the mortage was *not* being paid down the value of their homes kept rising. *interest-only* mortgages were designed to lower the monthly payments and help make homes a more affordable to those who might not have qualified for a more traditional loan. one thing to keep in mind with the *interest-only* loan is that the rate is a bit higher than a 5 year fixed ARM. @antoniusc: there are a lot of different factors which determine the type of loan that is right for you. for instance, how long do you plan on living in your home? if it’s less than 5 years than a shorter term fixed loan may be something you might consider. in the past many people opted for an *interest-only* mortgage especially in states like California where real estate prices were appreciating in the double-digits and everyone was building-up lots of equity in their properties. although the principle of the mortage was *not* being paid down the value of their homes kept rising. *interest-only* mortgages were designed to lower the monthly payments and help make homes a more affordable to those who might not have qualified for a more traditional loan. one thing to keep in mind with the *interest-only* loan is that the rate is a bit higher than a 5 year fixed ARM. ]]> By: Antoniusc http://www.mint.com/blog/finance-core/home-budget-the-financial-benefits-of-a-fixed-rate-mortgage/comment-page-1/#comment-1775 Antoniusc Fri, 20 Jul 2007 16:53:08 +0000 http://www.mint.com/blog/finance-core/the-financial-benefits-of-a-fixed-rate-mortgage/#comment-1775 This is a well thought out article. It's informative and it raises a number of issues that could be well-addressed in a follow-up. The article seems to be strongly in favor of a fixed rate mortage. That's ok, but clearly ARMs exist in droves so let's hear more about why folks get into them and what are the benefits -- not just the risks. Additionally, I'd like to know more about a fixed interest only mortage, say for five years. What are the pros and cons and what are the options coming up to the end of the initial term. This is a well thought out article. It’s informative and it raises a number of issues that could be well-addressed in a follow-up. The article seems to be strongly in favor of a fixed rate mortage. That’s ok, but clearly ARMs exist in droves so let’s hear more about why folks get into them and what are the benefits — not just the risks. Additionally, I’d like to know more about a fixed interest only mortage, say for five years. What are the pros and cons and what are the options coming up to the end of the initial term. ]]> By: Elissa http://www.mint.com/blog/finance-core/home-budget-the-financial-benefits-of-a-fixed-rate-mortgage/comment-page-1/#comment-1769 Elissa Fri, 20 Jul 2007 13:40:53 +0000 http://www.mint.com/blog/finance-core/the-financial-benefits-of-a-fixed-rate-mortgage/#comment-1769 Random, and probably a way vague question, but I figure I might as well just through it out their. How does a mortgage differ from your everyday loan? Random, and probably a way vague question, but I figure I might as well just through it out their. How does a mortgage differ from your everyday loan? ]]> By: caroline http://www.mint.com/blog/finance-core/home-budget-the-financial-benefits-of-a-fixed-rate-mortgage/comment-page-1/#comment-1735 caroline Thu, 19 Jul 2007 16:33:41 +0000 http://www.mint.com/blog/finance-core/the-financial-benefits-of-a-fixed-rate-mortgage/#comment-1735 i think your website is great! currently i'm working in the mortgage banking industry and most people are uninformed about their mortgages, it's a bit frightening. especially when it comes to the more creative financial products like hybrid option arms. yesterday i was listening to ben bernanke speak about the collapsing subprime mortgage market. many lenders are really tightening up their credit standards or getting out of the subprime banking altogether which really leaves the subprime borrower in the hole. their loans are adjusting, the equity in their home has vaporized and when their ARM's adjust the borrower is not able to refinance due stricter standards, and inevitably can not make the payments on their mortgage. a few years ago it made sense to get a 5/1 ARM or another adjustable rate mortgage when rates were very low. i have a friend who has a 5/1 ARM with a rate 3.9%. now days that's unheard of, i do advise more people to get a 30 year fixed loan depending on their situation. however, even the ALT-A mortgage market is tightening up and it's becoming harder to get borrower's approved for a 30 year fixed rate mortgage. i think your website is great! currently i’m working in the mortgage banking industry and most people are uninformed about their mortgages, it’s a bit frightening. especially when it comes to the more creative financial products like hybrid option arms.

yesterday i was listening to ben bernanke speak about the collapsing subprime mortgage market. many lenders are really tightening up their credit standards or getting out of the subprime banking altogether which really leaves the subprime borrower in the hole. their loans are adjusting, the equity in their home has vaporized and when their ARM’s adjust the borrower is not able to refinance due stricter standards, and inevitably can not make the payments on their mortgage.

a few years ago it made sense to get a 5/1 ARM or another adjustable rate mortgage when rates were very low. i have a friend who has a 5/1 ARM with a rate 3.9%. now days that’s unheard of, i do advise more people to get a 30 year fixed loan depending on their situation. however, even the ALT-A mortgage market is tightening up and it’s becoming harder to get borrower’s approved for a 30 year fixed rate mortgage.

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