Looking at Mortgages?

5 Mortgages To Consider.....

1. Fixed-Rate Mortgages

• Typically between 15 and 30 year terms, your interest rate will remain constant throughout the life of the loan, which can offer stability and protection should rates go up! 

2. Adjustable Rate Mortgages

• These loans will start at a lower interest rate (Great news for anyone looking to sell or refinance in a few years!) for 3-7 years. Since the rates can change periodically after that initial period, unless you’re looking to refinance or move, make sure you’re comfortable with the limits (If any) on how much your interest rate is allowed to change. 

3. Conventional Mortgages

• Your conventional mortgage, while not backed by a government agency, gives you options. They can be fixed, or adjustable rate. They’ll generally require a decent credit score and a 20% down payment. You can put down less than 20%, but then you may be required to purchase private mortgage insurance, which can average 0.5-1% of the loan amount per year. 

4. Government Backed Mortgages

• These Include FHA, VA & USDA loans. FHA loans are guaranteed by the Federal Housing Administration, and can open doors to lower down payment requirements, and flexibility on your credit score. VA loans are offered to Veterans, Service Members & their spouses, and can have no down payment requirement, no PMI, and competitive interest rates. USDA loans are limited as to which areas the property can be located in, as it must be designated “rural”. USDA loans also offer no down payment options, but may require mortgage insurance. 

5. Jumbo Loans

• Jumbo loans are mortgages that exceed the loan limits set by Fannie May and Freddie Mac, typically being used for financing homes that are priced in the multi-millions. They may have strict qualification requirements, not excluding credit score and your down payment.