Bank of America Mortgage Loans

There are many financial institutions that specialize in financing home buyers the money needed to purchase a new home. The options that home buyers have are designed to help people obtain an affordable mortgage without breaking the bank. Bank of America mortgage loans are some of the most popular mortgage loans out there. In fact, many people will choose Bank of America mortgage loans because of the flexibility and options that are made available. These mortgage loans provided by Bank of America are available with fixed rates, adjustable rates, as well as government loans and specialized loans.

A Bank of America mortgage loan that has a fixed rate is made available in more than one type of option. For example, a fixed rate mortgage loan from Bank of America is available in 15, 20, and 30 year plans. Each one of these fixed rate mortgages will have an interest rate that doesn’t fluctuate with the market’s interest rates. In other words, these mortgages have a straight forward interest rate that is paid throughout the life of the mortgage contract. Individuals applying for a mortgage and are planning on making payments for the life of the contract are advised to get a fixed rate mortgage plan.

Bank of America mortgage loans that have an adjustable rate are associated with having adjustable interest rates that are directly affected by the markets. If interest rates go up, so do the interest rates on an adjustable mortgage. However, adjustable mortgage loans from Bank of America start out typically with a lower interest rate than a fixed rate mortgage. However, the chances that the interest rates will be higher than the interest rates with a fixed mortgage are great. Individuals who are expecting to pay off the mortgage sooner than specified in the contract are advised to get an adjustable rate mortgage plan from Bank of America.

If the individual pays off the mortgage before the interest rates go up, they will end up saving money in interest. Bank of America provides adjustable rate mortgage plans in many different options. These options are broken down into three main categories, like a 10/1 adjustable rate, a 7/1 adjustable rate, and a 5/1 adjustable rate. A 10/1 adjustable rate mortgage will have a fixed interest rate for the first 10 years of the mortgage. After 10 years, the interest rate associated with the mortgage loan will go up.

The 7/1 adjustable rate mortgage will have an interest rate that will go up after 7 years, and the 5/1 has an interest rate that goes up after 5 years. These are broken down to meet the many different needs of different home buying strategies. An individual planning on only living in the home for a few years are advised to get a 5/1 adjustable rate mortgage from Bank of America. If the individual plans on staying longer, they will choose a different type of adjustable rate mortgage from Bank of America to meet their future plans.

Bank of America mortgage loans are also available in government loan programs as well. Government loan options include FHA mortgage loans and VA mortgage loans. The FHA mortgage requires a low down payment while the VA mortgage loan requires no down payment at all. Both fixed and adjustable rates are available for FHA and VA mortgage loans. Bank of America mortgage loans are also available in specialized loans. Specialized loans are specifically designed with a certain amount of flexibility to meet the home buyer’s needs. Home buyers will use specialized loans when they need to have some flexibility and moving room in order to afford a mortgage.