For months now, you have been looking at houses and home brochures and you have finally found it - the house that's just right. So now, you're feeling anxious to buy your new home, move in, and get settled. But this is not where your search ends. You still have one more important task to do and that is getting a home mortgage. Contrary to popular...

Part I: Learn About your Home Mortgage Options

Mark Mathis

A mortgage is a long-term loan that uses real estate as collateral. A mortgage loan is commonly used for buying a home. Mortgage loans are usually fully amortizing, which means that the monthly principal and interest payment will pay off the loan in the number of payments stipulated on the note. Mortgage loans are also described by the length of time for repayment, such as 15 or 30 years, and whether the interest rate is fixed or adjustable. A mortgage loan where the downpayment is less than 20% usually requires private mortgage insurance (PMI) or government insurance or guarantee.

Most mortgage loans require monthly payments of principal and interest plus additional payments that are set-aside in escrow accounts to pay property taxes and homeowners insurance. In addition, loans with PMI or government mortgage insurance may require payment of a monthly mortgage insurance premium as part of the regular monthly payment.

Some lenders offer bi-weekly mortgages, which call for 26 payments per year. The details of bi-weekly mortgages can differ, so it's best to ask the lender to outline the details of how these programs work.

Homebuyers who can afford the higher monthly payment sometimes prefer a 15-year mortgage to a 30-year mortgage. Interest rates on 15-year mortgages usually are slightly lower than 30-year rates. In addition, a homebuyer financing a home purchase with a 15-year mortgage will repay principal substantially faster and will pay far less total interest over the term of the loan.

About the author:
Mark Mathis is a building designer and publisher of several stock house plan websites and informational resources including http://www.HousePlanCentral.com>http://www.HousePlanCentral.com, http://www.HousePlanGallery.com>http://www.HousePlanGallery.com, and http://www.moneytalks-bswalks.com>http://www.moneytalks-bswalks.com. Be sure to visit each site and subscribe to our eNewsletters to receive special offers, promotions, and subscriber-only features.

The latest information and news on Mortgages:

Yahoo! News Search Results for mortgage

Leading Democrat offers mortgage aid bill (Reuters via Yahoo! News)
The second-ranking Democrat of the U.S. Senate on Tuesday introduced legislation that would let bankruptcy judges erase some mortgage debt in an effort to stem foreclosures.
Mortgage-Bond Yields Hit Lows on Speculation of More Fed Buying (Bloomberg)
Jan. 6 (Bloomberg) -- Yields on Fannie Mae , Freddie Mac and Ginnie Mae mortgage bonds fell to record lows, dragged down by their declining spreads relative to government notes after the Federal Reserve began a $500 billion program to buy the bonds.
Mortgage-backed Securities Jump, Signaling Rates To Drop (Fox News)
Mortgage-backed Securities Jump, Signaling Rates To Drop
Mortgage-Bond Spreads Fall Amid Speculation of More Fed Buying (Bloomberg)
Jan. 6 (Bloomberg) -- Yields on Fannie Mae , Freddie Mac and Ginnie Mae mortgage securities tumbled to the lowest since October 2007 relative to government notes, after the Federal Reserve began a $500 billion program to buy the bonds.
Fed to Begin Buying Mortgage-Backed Securities (New York Times)
The Federal Reserve Bank of New York said Monday that it had begun purchasing mortgage-backed securities in an effort to bolster the battered housing market.
Yahoo! News Search Results for refinance

Rushing to refinance: Is it worth it? (WINK TV Southwest Florida)
Right now 30-year, fixed mortgage rates are at a 37-year low, and that has many people looking to save.
Govt to focus on IIFCL refinance (Central Chronicle)
New Delhi, Jan 5: The government will focus on utilisation of refinance facility extended to IIFCL to provide Rs 75,000 crore for the infrastructure sector projects with a view to arrest economic slowdown, Planning Commission Deputy Chairman Montek Singh Ahluwalia said on Monday.
Now is a good time to refinance (Ravalli Republic)
Plunging interest rates over the past month have prompted many homeowners in the Bitterroot Valley to look into refinancing, local lenders say.
Govt to focus on IIFCL refinance to pump in Rs 75k cr (The Hindu)
NEW DELHI: The government will focus on utilisation of refinance facility extended to IIFCL to provide Rs 75,000 crore for the infrastructure sector projects with a view to arrest economic slowdown, Planning Commission Deputy Chairman, Mr Montek Singh Ah luwalia said on Monday.
Govt to focus on IIFCL refinance to pump in Rs 75k cr: Montek (Business Stand...
The government will focus on utilisation of refinance facility extended to India Infrastructure Finance Company (IIFCL) to provide Rs 75,000 crore for the infrastructure sector projects with a view to arrest economic slowdown, Planning Commission Deputy Chairman Montek Singh Ahluwalia said today.