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By Sean A. Kelly
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!
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