The most common type of loan option, the traditional fixed-rate mortgage includes monthly principal and interest payments which never change during the loan’s lifetime.
Adjustable-rate mortgages include interest payments which shift during the loan’s term, depending on current market conditions. Typically, these loans carry a fixed-interest rate for a set period of time before adjusting.
Hybrid ARM mortgages combine features of both fixed-rate and adjustable rate mortgages and are also known as fixed-period ARMs.
Conventional home loans offer a variety of programs with long term financing options such as 30 year mortgages. A minimum of 3% down is all that is required and may be received as gift funds from an acceptable donor.
FHA home loans are mortgages which are insured by the Federal Housing Administration (FHA), allowing borrowers to get low mortgage rates with a minimal down payment. FHA also allows very generous contributions allowed by Seller's of properties up to 6% of the purchase price.
VA loans are mortgages guaranteed by the Department of Veteran Affairs. These loans offer military veterans exceptional benefits, including low interest rates and no down payment requirement. This program was designed to help military veterans realize the American dream of home ownership.
If you live in a small town or rural area a USDA loan might just be the perfect fit! One of the only 100% loan programs still available. Income limits do apply, but will vary upon location of property.
Should you get a fixed-rate or adjustable rate mortgage? A conventional loan or a government loan? Deciding which mortgage product is best for you will depend largely on your unique circumstances, and there is no one correct answer. That is why it is important to work with a trusted advisor to compare and determine the program best for you!