Mortgage Loans for Your Situation
There are so many mortgage loans and programs available today that it can be overwhelming. Which option is best for you depends on your situation. Variables to consider would be how much has been saved for a down payment, your income and whether you’re a first time home buyer or not. The most commonly known type of mortgage program is the conventional fixed rate.
This type of mortgage option is available in ten, fifteen, twenty and thirty year terms. A private mortgage insurance is required if the down payment is less than twenty percent. An adjustable rate mortgage is another option. This is available in fifteen, twenty and thirty year terms. Interest rates are set daily. Interest rate adjustment periods are of one, three, five or seven years from the anniversary date. Private mortgage insurance is required again if the down payment is less than twenty percent.
Construction loans are for those building a home or purchasing in a new development. They are available in fixed or adjustable rates with terms up to thirty years. During construction, the borrower makes interest only payments. When the home is complete, full payments including principle begin.
With an income based special financing loan, as little as three percent down is required and it can be a gift. No private mortgage insurance is required. Finally, closing costs of up to one hundred percent, can be financed. VA loans are an option for eligible veterans. You can see our mortgage calculator for more info on rates and how these would affect your bottom line. Qualification guidelines are flexible. This type of loan can be a fixed or adjustable rate. FHA loans are another special mortgage program with low or no down payment and fixed rates.
With the FHA loan, the seller is permitted to assist with costs and credit guidelines are expanded. There are many other options besides the types mentioned here. If you are thinking of purchasing a home in the near future, research, read and enlist the help of your local realtors and bankers
to determine which option is best for you.
