Types of Mortgage Loans Saint Louis MO

Looking for home mortgage loans can get confusing with the variety of mortgage loan programs available today. Most of these programs are just variations of fixed rate and adjustable rate mortgage loans and can be structured to fit your needs.

Local Companies

Joyce Hunter, Mortgage Consultant
314-450-4016
8125 Delmar Blvd.
St. Louis, MO
Midwest Mortgage Capital
314-787-2900
1227 Fern Ridge Pkwy Ste 200
St. Louis, MO
American Home Loans
314-835-0301
10777 Sunset Office Dr
St. Louis, MO
First American Lending
314-692-0444
2388 Schuetz Rd
St Louis, MO
Heartland Mortgage
(314) 512-8750
11670 Gravois Rd
Saint Louis, MO
Raskas Aviva MD
(314) 432-1700
8420 Delmar Blvd
Saint Louis, MO
Midco Mortage
(314) 961-0079
2001 S Hanley Rd
Saint Louis, MO
American Wholesale Lenders
(314) 587-2900
2566 Metro Blvd
Saint Louis, MO
Group Fidelity Mortgage
(314) 822-2194
Saint Louis, MO
First Bank Mortgage
(314) 205-3100
1 1st Missouri Ctr
Saint Louis, MO

Fixed Rate Mortgage - If you’re going to be staying in your home for at least 7 years, consider a fixed rate. This loan’s interest rate is fixed for the life of the loan or term – 15, 20 or 30 years. Usually the shorter the term, the lower the interest rate. This type of loan is amortized – both the principle and the interest are paid off at the end of the loan term.

Adjustable Rate Mortgage - If your only planning on living in your home for a short period of time you may want to consider an adjustable rate. Your interest rate can adjust – up or down. The rate is tied to an index like treasury bills or prime rates. The initial rate usually starts out low, but can adjust after a set period of time. If you choose this type of loan and then decide to stay in your home, you may want to refinance after two years to avoid any upward rate adjustments.

Combination Fixed and Adjustable - Going to be in your house for just a few years? This type of home mortgage loan can start out as a fixed rate for a set number of years, keeping your rate and payments low, and then the loan adjusts. Like the adjustable rate, the amount of the adjustment is tied to an index that can go up or down. This loan is sometimes called a two-step or convertible ARM. Just remember, these loans usually go up after a set period of time, or if you have to convert after a few years it can cost you money. Be sure you understand your loan and when your payments could go up to avoid paying more than you have to.

Balloon - An interest only loan. You would only want to use this loan if you were only staying for a short time in your home. Because you’re only paying interest, and nothing towards the principle, you don’t build any equity. At the end of the loan term, you have to pay the balance off all at once, but few people ever keep these loans for the entire term.

Having an understanding of these basic types of loans and combinations of them is the key to finding the mortgage loan that is right for you.

About the Author:

J.Stewart is the author of "Mortgage Soup". After working in the escrow business he operates http://www.2applyforloan.com

sales-marketing@swbell.net


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Featured Local Company

Joyce Hunter, Mortgage Consultant

314-450-4016
8125 Delmar Blvd.
St. Louis, MO
www.FastMortgageLoanApprovals.com