Middletown is considered an All-American city, located in southwestern Ohio . Middletown became a city in 1886 and was the home of AK Steel Holding Corporation, which was founded in 1900. Though AK Steel Holding Corporation has moved, Middletown is still the home of Miami University . Middletown has approximately 52,000 residents.
It may seem like a town with limited jobs, but with the University, there are many jobs available and housing is always needed in a college town. Whether you are a student moving to Middletwon or you already own a home, you will be interested in a few of the options listed below when talking about mortgages.
A mortgage is a loan for a certain amount from a lender to allow someone to purchase a home. The lender will appraise the home to determine the value of the property this will in turn determine the amount the lender is willing to loan you. There are several loans to choose from. There are some with fixed interest rates and those with variable interest rates for the life of the loan. The life of the loan is in part determined by the type of loan. The other factor of determining length is you. Below are two types of mortgage, a 30- year mortgage and an adjustable rate mortgage that we will concentrate on. We will also go over terms such as home equity loan and refinance.
30- YEAR MORTGAGE
A 30- year mortgage is a type of fixed rate mortgage. This means your mortgage will have a fixed interest rate for the 30 years of the loan. Your monthly payments will also remain the same. The top advantage of the loan of course is the fixed interest rate. The other advantages are seen when comparing other loans. Other loans may have a shorter term or have variable interest rates. With a 30-year mortgage, you will never have to worry about coming up with more money for your monthly payments and therefore you can budget yearly with an accurate accounting.
ADJUSTABLE RATE MORTGAGE (ARM)
An adjustable rate mortgage has a variable interest rate for the life of the loan. This means your interest rate may increase or decrease several times during the loan. Most ARM’s change every few months or annually. This is dependent on the option you have. Options are the type of adjustable rate mortgage you have. There are typically three types: interest only, interest and principal, and paying what you can afford every month. This last option is not the best because it can take you quite a while to pay off the loan if you don’t have a set amount due every month. So we will concentrate on the other two. An interest only loan benefits those who will only have the loan for a short period of time, say six months. You will never pay towards the balance of the loan while it is interest only. The second option allows you to pay on both, a set amount will go to interest and the other amount will go towards the principal balance. An adjustable rate mortgage usually has a lower interest rate than the fixed rate mortgages when you first obtain the loan. The interest rate is generally below 2%. When your interest rate begins to change you may want to refinance.
REFINANCING
Refinancing is when you pay off your existing loan with a new loan. You may decide to change the type or duration of the loan you have to help with your expenses.
HOME EQUITY LOAN
A home equity loan is designed to give you a special low interest rate to obtain the equity from your home. Equity is the value of your home minus the amount owed on an existing loan.
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