Getting several competing quotes and getting the best offer can save you thousands over the course of your loan.
We at calculators4mortgages.com will help find all the help you need to find the Tennessee mortgage that suits you best. And the web site's Tennessee mortgage rate calculator will allow you to compare some of the lowest mortgage rates anywhere in the Volunteer State.
Tennessee Mortgages: Your Main Choices
If you're a first time buyer on a low income, you may qualify for a Tennessee Housing Development Agency (THDA) subsidized mortgage. In fact, in most areas--from Anderson County to White County--you may still be eligible, providing you're on a low income, even if you're not a first time buyer. Ask your lender whether you qualify, or download the THDA guide.
Mortgages in Tennessee are much the same as elsewhere in the United States, and can be backed by FHA insurance. Your main choices are:
Fixed Rate Mortgage (FRM)
The great thing about a fixed-rate mortgage is that it's safe and predictable. You know where you are with one of these. Your last monthly repayment will be exactly the same as your first--and as every other one in between.
Adjustable Rate Mortgage (ARM)
Adjustable-Rate Mortgages are for the more adventurous. The rate you pay will vary with interest rates in general, which is great when they're going down, but not so hot when they're on the rise. But ARMs often have very low introductory rates, so if you plan to live in your new home for only a few years--or if you're willing to refinance down the line--then one of these may be your best bet.
Balloon Mortgages
With most balloon mortgages, you pay only the interest on your home loan. So your monthly repayments can start out pretty low. But, naturally, you have to pay back the amount you borrowed at then end, which can be a challenge if you haven't planned carefully. That's why balloon mortgages--like ARMs--are usually best for those who plan to move (or to refinance) after a few years.
Refinance Loan
Most people refinance for one of three reasons. First, their existing home loan is no longer such a good deal, and they refinance to get the lowest mortgage rate currently available. Secondly, their finances have improved and they want a different sort of loan that allows them to build more quickly the asset value of their home. Or, thirdly, their financial circumstances have worsened and they need to reduce their monthly repayments by changing the type of their mortgage, or a cash injection from releasing some of the equity (the value of a home, minus the outstanding loan secured on it) that's tied up in in their house. Whatever your reason, check out the refinance options available using the calculators4mortgages.com mortgage rate calculator.
Reverse Mortgage
You can only get a reverse mortgage if you're a senior. A reverse mortgage releases money that is tied up in your house. You receive a lump sum, monthly payments, or a line of credit, and the great news concerns your monthly repayments. You don't make any! None at all. The amount you borrowed, and all the interest on it, is repaid in one go when the house is sold, or ceases to be your main residence, for whatever reason.
Mortgage Calculator Tools
As you go from researcher to homebuyer to homeowner, please continue to make use of our mortgage loan calculators which include a refinance calculator, a mortgage comparison calculator, and an amortization calculator & amortization chart. There's also a mortgage calculator to tell you your monthly payments, and an affordability calculator that looks as how much you can spend, and your expenses to show you how much home you can afford.
