Mortgage Types

 

There are many types of mortgages available. Carefully consider the options that best suits your needs when choosing your mortgage. These are some of the options available.

Fixed Rate Guarantees a fixed rate throughout repayment. If you want to stay on budget with the same monthly payment, than this is what you are looking for.

Adjustable Rate Periodically adjusted rate according to market indexes. In other words you're monthly rate may change periodically to reflect the interest rate. Often ARMs start off at low interest rates, but be prepared for the rates to rise. ARMs are a good choice if you need a lower initial rate and are not concerned with future increases.

FHA Limited down payment options, insured by Federal Housing Administration. Usually with this type of mortgage you can purchase with a very small down payment. These mortgages have a maximum loan limit that depends on the average cost of housing in a given region.

VA For veterans: No down payment, no prepayment penalty, fixed rate. Qualified veterans are able to buy a house with NO down payment. Qualification guidelines are more flexible than your conventional loans.

Balloon Lower interest rate for fixed period - refinancing optional at end. These loans offer LOW interest rates for short term financing, 5 to 10 years. At the end of the term, you are required to pay off the balance with one lump-sum payment. This is a great option if you intend on selling or refinancing within a few years. Check the terms of this loan carefully. Not all lenders guarantee to extend the loan.

Jumbo Financing high valued dwellings for amounts up to $2M