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 |
