There is a lot to understand about mortgages! An important starting point is understanding there are several different loan productsI have listed a brief summary of each below.
30 Year Fixed Rate
Mortgage
The 30 year fixed rate mortgage is one of the most popular
and secure home loan options available, especially if you want you monthly
payments to never change.
15 Year Fixed Rate
Mortgage
If you’re looking to save thousands in interest expense and
you want to own you home quicker versus a 30 year fixed rate mortgage, a 15
year fixed rate mortgage could be good for you.
Plus, your payment and interest rate will never change during the term
of this mortgage.
Adjustable Rate Mortgage
(ARM)
Take advantage of the lowest rate available with an
adjustable rate mortgage! It’s a great loan option if rates are on the decline
or you’re staying in your home for a short time.
FHA Loan
Offering loan flexibility and rate security if you want it,
an FHA loan is an easy way to get a new home loan. Low down payment options are available with this loan.
USDA Loan
For properties located in rural areas, with little to no down payment and reduced mortgage insurance.
Some income restrictions do apply and vary by county.
VA Loan
With relaxed credit standards and low down payment options,
the VA loan is geared specifically to help veterans and military personnel get
a mortgage and own a home.
Jumbo Loan
If your home loan amount exceeds $417,000 a Jumbo loan is
likely a good choice for you. Jumbo
loans can be of the fixed or adjustable variety.
Interest Only
Mortgage
An interest only mortgage is great if you are interested in
the lowest possible monthly payment for an initial period of time.
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