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| Mortgage Information |
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 Are you looking to buy, sell or refinance? Do you just want to consolidate your debts? Do you want to take advantage of today's low rates?
If so, this is a good place to start.
We can provide information to assist you in understanding the mortgage process and terms. If you need more information, please contact Eric Hedeman or Jeff Faust at Oyster Mortgage Company, Inc. Our contact information is at the bottom of this page.
Exotic ways to pay for a house - Some mortgages will move when you do; others let you skip payments; loans can be customized to fit the buyer's wishes
The three-year real estate boom has brought a host of exotic mortgage plans to the market.
Some are designed to help homebuyers get into houses by keeping initial payments low. Others allow buyers to take their mortgage loan with them from home to home. And others let buyers decide if they want to customize their loans so they are paid off in 10 years, 23 years or even 40 years. Experts predict that these alternatives will become even more attractive if rates continue their recent ascent.
Thirty-year mortgage notes aren't the only options, of course, and homebuyers have hundreds more choices than their parents and grandparents ever did. To stand out from the clutter of advertised rates and points, lenders increasingly have introduced new programs allowing buyers to skip payments, pay only the interest for a few years, or get group discounts on mortgage services. There are so many more options that people are definitely looking at a mortgage not just as a way to own a home, but as a way to manage their finances. During the past year, more buyers are essentially deciding the length of their loan.
There are a variety of new programs from national lenders. One company is testing a program that allows the borrower to skip two payments a year, but no more than 10 payments over the life of the 30-year loan. The new loan is designed for seasonal workers, teachers, entrepreneurs and others who often see their incomes fluctuate. Such workers might otherwise shy from buying a home for fear they might come up short some months.
Last year, another lender began to a loan that comes with instant access to a home equity line of credit via a debit card or checking account activated by a visit to the bank or by calling a toll-free telephone number. Buyers might choose this option because the equity line frequently charges less than rates offered by credit cards, and the interest may be tax deductible as well.
Alternatively, there are a growing number of lenders offering interest-only mortgages, which allow borrowers to pay only the interest for a set number of years. A borrower who can ignore the fact that he isn't building equity - one of the more satisfying aspects of home buying - can deduct most of his housing bill at tax time. What's more, his housing payments will be lower while paying the interest, assuming mortgage rates don't soar. Still, there are drawbacks. Buyers who plan to sell in a few years could find themselves in a bind if they don't plan carefully with this loan.
An online lender this summer unveiled a version of a 'mobile mortgage' that allows a homeowner to lock in at a relatively low rate and take the mortgage with him when he moves. When rates are low, the portable loan is popular, experts said, because buyers can take it with them when they move. As rates grow, the option becomes less attractive because homeowners will have to pay more for their loan.
In general, buyers navigating the jungle of available mortgage products should consider more than just what the monthly payment will be.
If you want to find out about these programs, or one that might be better suited to your specific needs, you need professionals with a combined 25 year experience. If you have any questions, concerns, or just want a free market analysis, just contact Eric Hedeman or Jeff Faust with Oyster Mortgage Company, Inc at 410-757-0070. You owe it to yourself and your family to see if you can better your financial situation.
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