Rhode Island
Home Financing and
Mortgages
With interest rates at all time
lows, agencies that help people purchase homes are working harder than ever.
In Rhode Island, the Rhode Island Housing and Mortgage Finance Corporation
has helped over 56,000 families buy homes over the years. Recently they have
relaxed some of their usual income requirements to qualify for reduced
interest rates and subsidies for down payments. Rhode Island is one of the
most expensive housing markets in the country being in the heavily populated
north eastern U.S. First-time buyers and existing homeowners need all the
financing help they can get.
Perhaps the most frustrating part
about buying a new house is securing a good mortgage. The majority of people
can’t simply write a check for the price of their new house. They need to
borrow. There are a wide variety mortgages out there to help you secure the
financing you need to buy a new home.
A 30 year fixed mortgage, which has
a fixed interest rate, is a type of mortgage loan that is repaid by the
borrower making 360 equal monthly payments over a period of 30 years. Since
the borrower's payments are 'fixed', the borrower can expect to make the
same monthly payment for the entire term of the loan. A 30 year mortgage
loan is the most widely accepted program used to finance a residential
purchase.
Another type of mortgage is one where the interest rate changes over the
term of the loan depending on the prevailing interest rate. An Adjustable
Rate Mortgage (ARM) is a mortgage loan that is most widely known for its low
starting interest rate (when compared to the 30 & 15 year mortgage loans).
This 'low' introductory rate is used to calculate the mortgage payment for a
specified period of time. Once this introductory period is over, the
interest rate is adjusted periodically the yield on the one-year Treasury
Bill. |
