Getting the right mortgage
October 28, 2013
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When it comes to getting a mortgage, choosing the right type can make a difference in home affordability and determining monthly payments. Some of the options include the following:
Adjustable-rate mortgages
Typically for someone who doesn't plan to stay in their house for too long, adjustable-rate mortgages usually start off with a low rate for a certain amount of years. After the time period has expired, the interest rate will fluctuate with market trends. If interest rates rise, so will mortgage payments.
Typically for someone who doesn't plan to stay in their house for too long, adjustable-rate mortgages usually start off with a low rate for a certain amount of years. After the time period has expired, the interest rate will fluctuate with market trends. If interest rates rise, so will mortgage payments.
Fixed-rate mortgages
Unlike adjustable rates, fixed mortgages won't change. This type of loan is generally for a homeowner who plans to stay for a long period of time, and loans are usually applied with 15- or 30-year terms. When market changes affect interest rates, the fixed mortgage will remain the same. Payments for fixed-rate mortgages are stable and allow for homeowners to predict other expenses better.
Unlike adjustable rates, fixed mortgages won't change. This type of loan is generally for a homeowner who plans to stay for a long period of time, and loans are usually applied with 15- or 30-year terms. When market changes affect interest rates, the fixed mortgage will remain the same. Payments for fixed-rate mortgages are stable and allow for homeowners to predict other expenses better.
Mortgage refinance
For homeowners with a fixed-rate mortgage, it is possible to refinance when the market changes. Refinancing can reduce monthly mortgage payments when interest rates are lower.
For homeowners with a fixed-rate mortgage, it is possible to refinance when the market changes. Refinancing can reduce monthly mortgage payments when interest rates are lower.
Interest-only mortgages
It is possible to have mortgage where a borrower only pays interest on the loan for a time period. Once the fixed term ends, the borrower must pay either a lump sum or refinance. Homeowners can benefit from this type of loan by paying less and having more cash flow each month.
It is possible to have mortgage where a borrower only pays interest on the loan for a time period. Once the fixed term ends, the borrower must pay either a lump sum or refinance. Homeowners can benefit from this type of loan by paying less and having more cash flow each month.
VA home loan
For eligible veterans and active-duty personnel, a VA home loan requires little or no down payment and offers competitive monthly payment rates.
For eligible veterans and active-duty personnel, a VA home loan requires little or no down payment and offers competitive monthly payment rates.
Jumbo loans
Homes that are more expensive may require a larger loan. Jumbo loans often have higher interest rates and down payment because they are a bigger risk for lenders. Loan limits are determined by government-sponsored enterprises Fannie Mae and Freddie Mac.
Homes that are more expensive may require a larger loan. Jumbo loans often have higher interest rates and down payment because they are a bigger risk for lenders. Loan limits are determined by government-sponsored enterprises Fannie Mae and Freddie Mac.
FHA mortgages
Backed by the Federal Housing Agency, FHA loans are better for borrowers with less-than-perfect credit who may not qualify for jumbo loans with private lenders. They also require a smaller down payment than jumbo loans.
Backed by the Federal Housing Agency, FHA loans are better for borrowers with less-than-perfect credit who may not qualify for jumbo loans with private lenders. They also require a smaller down payment than jumbo loans.
Contact the Federal Saving Bank, a veteran owned back, to explore options for a low rate mortgage.
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