買房係列之三.一 ------ 貸款的種類與優缺 ..ZT

There are as many types of mortgages to choose from as there are types of houses to buy. Here you'll learn how to choose the mortgage that is right for you -- and what kind of lender to get it from.

There's a lot to learn in this chapter, since there are all kinds of ways to finance your home. We'll tell you about fixed-rate and adjustable-rate mortgages, as well as subprime mortgages for those who have credit problems. We also explain the less-well-known kinds -- jumbo, balloon and others. Finally, we discuss the different types of lends and tell you which ones are the best choices in different financial situations.

What you can expect to learn from this chapter:

Fixed-rate mortgages

Lenders offer several types of mortgages, but the most common are fixed-rate mortgages. These loans feature fixed rates and monthly payments, generally for 15-year and 30-year periods. They're popular because: • Consumers balk at the thought of their house payment rising and falling with interest rates. • Whenever rates are low, fixed-rate mortgages are very affordable. Fixed-rate loan borrowers face one major choice: 15 year or 30? For some, a 30-year loan makes more sense. For others, a 15-year one does. Here are some pros and cons of each. 30-year Fixed Rate Advantages Disadvantages • Offers the chance to borrow money on a long-term basis without having to worry about the interest rates or payments changing. • Monthly payments are lower than those on 15-year loans because the interest is amortized over a longer period. • Lower monthly payments free up money that borrowers can pour into investments that yield more than their homes. • Higher interest bill increases the amount consumers can deduct at tax time, potentially reducing or eliminating their federal income tax liabilities. • Borrowers build equity at a very slow pace because payments during the first several years go largely toward interest rather than principal. • The overall interest bill is much higher because of the long amortization term. • The interest rates are higher than on 15-year loans. 15-year Fixed Rate Advantages Disadvantages • Borrowers build equity much more quickly due to shorter amortization schedules. • Overall interest bills are dramatically lower than those on longer-term loans. • The interest rates are lower than 30-year loans. • Monthly payments can be significantly higher than those on 30-year loans. • Restricts home buyers to smaller house than they might be able to afford with longer-term loans.

Example
Say you have a $150,000 mortgage. Let's compare how much money you would pay out in interest over 30 years vs. 15 years. The following chart shows the numbers. The monthly loan payments are principal and interest only. As you can see, with a 15-year loan, you would save $117,001 in interest.

Interest cost: 30-year vs. 15 year mortgages

Loan term	Rate	Monthly payment	Total interest
30 years	6.64%	$961	$196,304
15 years	6.10%	$1,274	$79,304
Interest difference	$117,001

Other factors to consider
Take the example above: With the 15-year loan, the monthly mortgage payment is $313 more than the 30-year mortgage. You may want to put that money toward another investment. For instance, in a bull-market economy, you can make more money investing that $313 monthly in mutual funds or other investment securities.

Keep in mind that there are ways to prepay your mortgage and whittle away at the principal each month, so that the loan is paid off sooner than 30 years.

Also, it depends on how long you plan to own the home you are purchasing. If it's less than five years, you may be better off with an adjustable-rate mortgage, or ARM.