New mortgage loan products offer a more complex selection of terms. Lenders now offer mortgages that are blends of short-term ARMs and 30-year fixed-rate loans with a lower fixed-rate of interest for a period of five, seven or ten years. Be sure that you understand what happens at the end of the initial term before you sign on the dotted line for such a loan.

Many of these loans revert to a 1-year adjustable rate loan at the end of the initial term and can be adjusted once a year based on an index tied to the cost of money. You should know how much over the index your rate will be set and the limit or cap on how much your payments can increase. A "balloon" note requires the entire balance to be paid to the lender after the initial period of the loan ends. Most of these loans require the lender to guarantee to refinance the note at that point if payments have been timely. The lender should spell out how the re-finance rate will be determined and what costs will be involved. These loans can help you buy a more expensive house than you could afford with a 30-year fixed rate mortgage, but be sure that you understand the terms and the potential risks.

	See All Tips In The "Financing Your Home" Category >
	See Complete Library Of Hundreds Of Tips In 30+ Categories >

Marlene Ginsberg
Coldwell Banker Residential Brokerage
211 South Street
Morristown, NJ 07960
Direct: 973-387-4022
Office: 973-267-8990 x 112
Evening: 973-895-3391
Fax: 862-345-3749
maginsberg@aol.com

Marlene has lived in Morris County for over 30 years and has been an active licensed real estate professional for over 20 years.... She has generated over $140 MM in real estate sales while successfully helping hundreds of families move. A perennial multi-million dollar producer (Gold Level - $15 MM in annual sales), Marlene has been a member of the prestigious Coldwell Bankers International President's Elite, which recognizes the top 1% of the company for the last six years. Marlene received an award for being #1 IN CUSTOMER SERVICE and is ranked among the top 50 out of 3500 Coldwell Banker agents in New Jersey year in and year out. As your NUMBER1EXPERTTM for the Randolph, Parsippany, Denville and Morristown/Morris Township areas of Morris County, Marlene heads a team of real estate professionals that are very well equipped to provide you the finest service for all your real estate needs. Put her and her entire team to work for you! Call or email Marlene today!

www.marleneginsberg.com is brought to you by Marlene Ginsberg, real estate for
Parsippany, Randolph, Denville and Morristown, New Jersey

Read Marlene Ginsberg's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge