December 07, 2001

By: Bev Dodd
Website: http://www.family-refinance-consolidation-loans.com

Mortgage loan: Surprisingly low rates

An "ARM" or "Adjustable Rate Mortgage" has a fluctuating interest rate and the potential for changing mortgage loan payments. Some mortgage companies will add closing costs to your mortgage loan balance rather than require you to provide cash at closing. We'll discuss this more below.

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You can save money just buy getting a mortgage loan, because your mortgage is tax deductible. If your mortgage loan is less than one million dollars, you will be able to deduct mortgage interest and property tax when you file you federal and state tax income forms. It is a nice perk that comes with buying a house. Be sure to check with your accountant to see how much you will be saving with this tax deduction and for any tax changes.

Beware of statements such as "No cost to you". Some mortgage companies use that expression to mean no out of pocket costs at closing -- that is, they will add closing costs to your mortgage loan balance rather than require you to provide cash at closing. Make sure you understand all the fees you are paying, whether added to the mortgage loan or not, you are the one to make sure you are getting a fair deal.

An "ARM" or "Adjustable Rate Mortgage" has a fluctuating interest rate and the potential for changing payment amounts. In most ARM mortgages, the interest rate on a mortgage loan is fixed for a certain number of years and then allowed to fluctuate in sync with current economic factors. An ARM is of value to the lender because the risks of lending money in a changing economy are passed on to the borrower.

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About The Author:

Bev Dodd is a successful author and publisher of http://www.family-refinance-consolidation-loans.com.  Many have commented that her website offers the best recommendations, links and information on loans, mortgages and financing.