Looking for the Right Home Loan? What you need to know…
By myfirstcho6600809, Jan 9 2019 08:49PM
With so many home financing options available, deciding what’s best for your solution can be over whelming. But, don’t let that stop you from pursuing your dream home!
We will help you navigate the “mortgage maze” and get you the information you need to make a well-informed decision.
FIXED-RATE: mortgage loans have the same interest rate for the life of the loan. Your payment never changes, regardless of the term of the loan.
ADJUSTABLE-RATE: mortgage loans (ARMs) have an interest rate that typically starts lower than a fixed-rate loan but will adjust after the initial rate expires.
For example, a 5/1 ARM will have a fixed interest rate for the first five years, and will then adjust annually, depending on-that ARM’s index value.
FHA: mortgage loans are insured by the Federal Housing Administration and are available to all types of borrowers.
With an FHA loan, you can make a down payment as low as 3.5% of the home purchase price.
Rates are often lower than conventional loans, but you will need to pay FHA mortgage insurance.
CONVENTIONAL: Loans are not insured or guaranteed by the Federal government in any way.
With more than 20% down, mortgage insurance isn’t required, and a broader variety of terms are available, however, conventional loans do require a higher credit score to get the best rates.
CONFORMING: loans meet Freddie Mac or Fannie Mac guidelines and “conform” to a pre-established criteria, including the loan amount limit.
For most of the United States, the conforming loan limit is $453,100.
JUMBO: loans exceed the conforming loan limits set by Fannie Mae or Freddie Mac.
Borrowers typically need excellent credit and a larger down payment. Interests rates for these loans are also generally moderately higher.
When you schedule an appointment for a free mortgage evaluation, we can discuss the “pros and cons” of each loan type and find what works best for YOU!