FINANCING

Mortgages and Home Loans:

There are many home loan options, and there is a different loan for every budget and need.

Fixed Rate Mortgages:

If you are looking for a long term loan, your best bet is to get a fixed-rate
loan.  With a fixed-rate mortgage you will always know what your payments
will be and it gives you the option to refinance if and when rates drop
significantly.

Adjustable Rate Mortgages:

There are also Adjustable-Rate Mortgages (ARM’s).  The interest rates of an ARM mortgage fluctuates within an indexed rate plus a set margin.  These loans also offer minimum and maximum rate caps which will limit the size of the adjustment. Adjustable-rate mortgages offer a lower rate than fixed-rate mortgage.  ARM’s are most beneficial to the homeowner who is expecting to stay in a home for a shorter period like less than 5 years.  You can also qualify for a larger loan with an Adjustable-rate mortgage.  Keep in mind that these rates will often increase after the adjustment period.

Federal Housing Administration Loans:

Loans from the Federal Housing Administration (FHA) are government-subsidized and have low down payments with closing fees included.  The government guarantees the loan.  FHA loans are favorable for those who are first time buyers.

Fixed-rate mortgages, Adjustable-rate mortgages, and Federal Housing Administration loans are the three most common loans.  There are other forms of loans including loans for veterans, reverse mortgages, balloon mortgages, and other conforming and non-conforming loans.  The right agent with the right team will get a good sense of your needs and will help you through the process of purchasing your home.