Taking a mortgage loan is a very common practice nowadays. There are hoards of people taking loans for various purposes but mostly for the purchasing of real estate. A loan refers to a sum of money borrowed from someone on the condition that it will be repayed within a stipulated period of time and with an added interest attached to it. There are numerous types of loans available in the market, and one of them is the mortgage loan.
Now this mortgage loan is basically of two main types, the Fixed rate mortgage or FRM and the Adjustable rate mortgage or the ARM. The FRM is one in which the rate of interest is fixed for the entire period of tenure of the loan while the ARM is one in which the rate of interest keeps on changing depending on the changes in the interest rates of the share market.
Sometimes the fixed rate mortgages are difficult to avail and that is when these ARMs come of use. A part of the fluctuating rates are passed on from the mortgage lender to the mortgage borrower. The ARMs again have a lot of varieties. The Equity Bank run by Steve Liefschultz Minnesota based banker and the CEO of this locally held and managed company, is one that helps people with loans issues related to their real estate. Along with this they also tend to business entrepreneurs who are struggling to find finances for their investments.
The Convertible Adjustable Rate Mortgage is a type of ARM which can be changed into a fixed rate mortgage if need arises. This helps in lowering your interest rates and gives you security against rising interest rates.
The next type of ARM is the Super Seven Mortgage, also known as the two-Step mortgage loan or Premier Mortgage. The rate of interest charged in this kind of loan is lower than the market rates and is usually given for a period of 7 to 10 years maximum. After the fixed period of time, the interest rate is adjusted according to the current market rate.
Equity Bank’s chairman, Steve Liefschultz Minnesota based banker and real estate expert can help you in ascertaining which is the correct loan type for you, according to your income and credit history. He is an adept in this trade and has several years of experience in the same.
Fixed Period Adjustable Rate Mortgage is yet another type of ARM in which the initial monthly payments are comparatively low, and helps you get a regular and constant cash flow as well as use this cash effectively in either saving or investing the difference.
Apart from this you also have the Optional Adjustable Rate Mortgage. So you see, there are several options of Adjustable Rate Mortgage Loans that you can choose from, you just have to understand your requirements properly and then after consulting a professional in the field finalize upon the kind of loan you want to avail.