Mortgage vs. Home Loan?

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What are the benefits of a mortgage compared to a home loan? Because it seems like when all is said and done that if you a have a mortgage and a home loan of equal term, equal interest rates, and equal loan amounts then the home loan always seems to be about 200-300 less per month.
This information comes from several online mortgage calculators that I’ve found. My wife and I are just in the beginning stages of talking about purchasing our first home so we haven’t talked any actual realtors or loan officers yet. Are the tools reliable or do they tend to give unreliable quotes?

Who knows the link or what the current home loan rate is now for various banks to compare??? Looking to buy a home and want THE BEST rate possible with no money down on a 30 year fixed…Any suggestions???

8 Comments
  1. Reply
    Curious
    February 10, 2011 at 10:34 pm

    a “mortgage” is the official term for a home loan.
    There is no way that a loan of equal term, equal interest, and equal loan amount would not always be 100% the same.
    – even if the two loans were for completely different items say a car & a piano = if the terms and amount of the loan are the same, the payments would be the same

    FYI = It’s the difference in the calculation.
    Some mortgage calculators – will provide mortgage & interest payment only.
    Other mortgage calculators – will provide you with TOTAL home purchase amount – this would be mortgage, mortgage interest, PMI, property taxes, and homeowners insurance costs.

  2. Reply
    Flusterated
    February 10, 2011 at 11:20 pm

    Umm…a home loan IS a mortgage. A mortgage is a loan that is secured by your home. I think you may be confusing home equity loan with mortgage… both are secured by your home’s value. Home equity loan is generally a 2nd mortgage that is used to pull cash out of your home’s equity – the problem is that those aren’t being written much anymore due to the housing crisis.

    If you are first-time homebuyers, then you will more than likely get an FHA loan and unless you have 20% down payment, you will be required to purchase mortgage insurance, which is something that isn’t generally included in those “calculators” on realtor.com and the like. Also don’t forget about fire/liability insurance and property taxes…those will also raise your house payment. Ask about having those items “impounded” (included in your total monthly payment) that way the mortgage company pays those on your behalf and you don’t have to budget for them. Muuuuch easier!

  3. Reply
    the kid
    February 10, 2011 at 11:54 pm

    A mortgage IS a home loan.

  4. Reply
    Dwight D J
    February 10, 2011 at 11:56 pm

    look to the big banks and credit unions, look online….I’ve heard of 4% for 5-year ARMs, but a 30-year fixed will be around 6.5%

  5. Reply
    joshcornelison
    February 11, 2011 at 12:02 am

    go to http://www.bankrate.com they have awesome guides for first-time homebuyers and you can compare rates in your area there too

  6. Reply
    Loopy
    February 11, 2011 at 12:32 am

    I just bought a house a few weeks ago. Small town Nebraska, local bank and my rate rate is 8.15% var for 5yrs, then it changes. The loan is for 20yrs total.

  7. Reply
    bidia
    February 11, 2011 at 12:36 am

    Because interest rates vary from one lender to the next shopping for the best mortgage can save you a lot of money. Always get no-obligation quotes. Here is a list of UK banks.
    http://www.emortgagedomain.com/info/UK-Banking-Groups-Resources.html

  8. Reply
    terunaz
    February 11, 2011 at 12:51 am

    hello, here’s an easy
    link with free info on mortgages:
    http://finance.ebookorama.com/

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