What Are PHH Mortgage Rates [mortgagegoalrates.blogspot.com]
What is PHH? Well PHH mortgage is one of the best five originators of retail residential mortgages in the U.S. that offer unparalleled service to their customers. They have a full range of programs and offer good PHH mortgage rates to give you the smoothest mortgage experience in the industry. PHH mortgage treats customers like family while providing financing with best PHH mortgage rates. They even guarantee the closing date and if they fail to, they may even reduce your interest rate by 1/8 of one percent for the life of your loan. PHH mortgage also offers free pre-approvals to qualifying homebuyers. This makes it easy for you to purchase your dream home. You may be able to know how much you can afford to buy and you may be able to increase your negotiating power too.
Many people want to refinance due to several reasons. They may want to lower the interest rates, increase the term of loan, or wish to meet renovation or repair expenses of their homes.
With PHH refinance, the calculations become simple and easy using their refinance calculator. You may also have closing costs paired with refinancing your loan which includes points and processing fees. To make it simple, you can roll all these costs into the refinancing loan amount to reduce your financial stress. Each buyer is unique and therefore each one’s affordability may vary. Your income and debts play a vital role in deciding your price range. To estimate how much you may be able to afford, you may simply use the affordability calculator. When you consider your loan program, it is advisable that you ponder about a few points. For instance, you may like to consider your period of stay in the home, the money you may put down and how you may finance the closing costs.When you decide on the loan program, then it is time to decide which PHH mortgage rate to choose.
The most common types of loan are the Fixed Rate Mortgage (FRM) and Adjustable Rate Mortgage (ARM). In fixed rate mortgage, the interest rate remains fixed throughout the life of the loan. The term of loan may be for 30, 35 or 40 years. During the first five to fifteen years, you may only be paying the interest on the principal balance. Hence, you may not be reducing your principal balance during the five to fifteen years of the loan. Beginning in the 6th, 11th or 16th year of loan, you may be making monthly payments of principal and interest in an amount suitable to entirely repay the unpaid principal balance at the current interest rate, over the remaining term of loan.The Adjustable Rate Mortgage (ARM) is where the interest rate changes over the term of loan. Initially the interest rate is usually lower than the Fixed Rate Mortgage (FRM) and subsequently the monthly payments would also be lower. The interest rate may go up or down at predetermined times. As a result, your monthly payment may also increase or decrease. Because of this unpredictable interest rate movement, most ARM programs offer “rate cap†protection, limiting the amount by which the rate can increase each year and during the life of loan. Usually all ARM’s are amortized over thirty years.
Whatever be your choice whether ARM’s or FRM’s, you are safe in the hands of PHH mortgage. Their prime aim is to satisfy the customer without giving high hopes to the customer and later shattering their dreams. They have experts to educate the customers even if they are first timers. If you purchase your dream home through PHH mortgage then your future has been secured at the right place!
Suggest What Are PHH Mortgage Rates TopicsQuestion by Been there, done that: What are mortgage interest rates based on and how do I estimate what my ARM rate will be when it adjusts? My 5-1 ARM adjusted last year and went to 6.25%. It will adjust again this November. Are mortgage rates based on the feds fund rate? Or something else? How can I estimate what my new rate will be? Best answer for What are mortgage interest rates based on and how do I estimate what my ARM rate will be when it adjusts?:
Answer by David Z
look at your loan agreement to see what your rate is tied. it will not be fed funds rate but some other index. those indexes are quoted daily in yahoo finance area. be careful. 30 year rates are about 5%. your rate could be 10% in 3-4 years if inflation takes off like so many experts predict.
Answer by Steve D
You need to check your contract - the index will be in there. It could be the prime rate, it could be a T-Bill rate, it could be the Fed Funds rate, it could be the LIBOR. Until you know what the index is, you can't calculate the new rate.
Answer by patrick
There are multiple indices that are used by mortgage holders to adjust a mortgage rate. some are tied to t tresury bills, some are tied to the LIBOR rate. You will need to check with the mortgage holder, (or just check your original mortgage contract) and find out what index your mortgage is tied to, and what the"spread" is. (The spread is the additional % added to the index).
Answer by Smart Piggy
As it was already mentioned, your rate could be based on any one of those indexes, however if it resets in November I am willing to bet that your rate is based on the Libor index. Check your paperwork and if you cant figure it out then call your Mortgage Representative for assistance. Last November the Libor was just over 3% and today it is just under 2% which means if it resets again this November your rate may actually be going down. If this is the case then your interest rate spread is 3% over the Libor, so come November 2009 your rate might drop to about 4.5% if the Libor stays the same between now and then. For more on basic finances visit Finance 101 located at www.honestbanker.blogspot.com
