bankrate mortgage calculators
This brochure can help you become familiar with basicbankrate mortgage calculators, determine
what terms are best for your situation, and identify issues you should be aware ofbefore taking out a mortgage loan.Mortgage loans are secured by a borrower’s home. This means that if you are unableto make the monthly payment for the mortgage, the lender can foreclose and takeyour home. The amount of your loan will be determined by your home’s value minusany liens or unpaid mortgage(s).Standard home equity loans or second mortgages are closed-end loans, meaning theloan proceeds are usually made available in a lump sum. These loans can have a fixedterm, a fixed interest rate, and fixed monthly payments, or they can carry an adjustableinterest rate that fluctuates with an index, such as the prime rate. Some adjustableratemortgages (ARMs) are “hybrid ARMs” which have a fixed rate for an initialperiod, then a fluctuating rate for the remainder of the loan.Home equity lines of credit are open-end loans or revolving credit lines. This meansyou can draw in amounts of money and at times when you have the need. The lenderprovides you with checks or other means to access your credit line. You may draw uponthe account as long as you don’t exceed your line of credit and are not in default. Theamount of the monthly payment is based on the amount of credit you have used. Somelenders may charge a fee for the use of the line of credit. Home equity lines of credit canhave a fixed or adjustable interest rate.
