We have seen a good bit of advertising lately about ING Direct home loans.  So, those of us here at Peak Personal Finance decided to take a closer look at the different types of ING home loans currently available.

The ING Direct Easy Orange home loan is a 5 year home loan with payments calculated as if it were a 30 year home loan.  At the end of the 5 year period, you have the option of renewing.  The ING Direct Easy Orange mortgage is currently being advertised with an interest rate of 4.750 percent.  For the ING Easy Orange mortgage, the maximum amount of the loan is 75 percent of the value of the home.

While we are generally not crazy about Adjustable Rate Mortgages (ARMs), they can make sense if you are planning to move before the end of the fixed rate period of the ARM.  The ING Direct Orange Mortgage is essentially an ARM with either a 5 year or 7 year period when the mortgage rate is “locked” (where your rate will not go up).  For the 5 year ING ARM the interest rate is 5.000 percent (5.500 percent if over $500,000).  The ING 7 year ARM has an interest rate of 5.250 percent (5.75 percent if over $500,000).  There are also limits on how high the interest rate can rise in any one year, and for the life of the mortgage.  For both the five and seven year ING Direct ARMs, the maximum amount of the loan is 80 percent of the value of the home.

ING Direct touts its low closing costs for both of these ING mortgages.  There are also lots of good information and tools — including a payment calculator — on the ING Direct online banking web site, so if you are interested in these ING loans you should definitely pay their web site a visit for the complete details.