MOST COMMON HOME LOANS FOR BUYERS

Dated: 02/03/2018

Views: 63

WHAT KIND OF MORTGAGES ARE AVAILABLE FOR ME?

If you're shopping for a home you should be shopping for a home loan as well. Where you live, how long you plan to stay, and other variables can make certain loans better suited to your circumstances.  Home buyers hoping to jump into the mortgage market will find three basic types of loans:

Image title


  • Conventional Mortgage. This is the most commonly used type and usually has the best rates.  You’ll typically need at least 10% for a down payment and good credit. Can be for 15 or 30 years or “interest only” where you are not paying any principal in your payment. With a fixed-rate home loan, your interest rate remains the same for the life of the loan and the payment is split into equal monthly payments for the duration.

  • FHA Mortgage. Thought of as the first time home loan program but actually available to anyone. The down payment is only 3.5% and is more forgiving of lower credit scores. The interest rates are not as attractive as Conventional, but qualifying for the loan isn’t as tough either.  

  • Adjustable Rate Mortgage (ARM). These have rates that start out lower than the current rates, but can change after one, two, or five years – usually upward! Typically, there will be a cap on the initial interest rate reset that is higher than all of the subsequent rate adjustments, and a cap on the amount the rate can change over the life of the loan.


Copyright © 2017 Avanti Way Realty, All rights reserved.
Article Source: RealtorMag.Org 

Blog author image

Mili Del Carpio

Always holding client satisfaction as her highest priority. Clients working with her never fail to appreciate her enthusiasm, professional integrity, and efficiency. After attending the University....

Latest Blog Posts

Importance Of The Inspection Process For Buyers

Inspecting the physical condition of a house is an important part of the home-buying process and should be included in your purchase contract as a condition of closing the sale. It is important to

Read More

Buying Real Estate Under LLC

If you own your own business, chances are you have a limited liability company (LLC) or, at the very least, you know what that is. Business owners may choose to buy a home using an LLC or under

Read More

Fees Included In Closing Costs For Buyers

Closing costs vary widely based on where you live, the property you buy, and the type of loan you choose. In this article we outline closing costs when you purchase a home with financing.Typically,

Read More

Financing Requirerments To Buy A Home

Mortgage lenders require paperwork that verifies every facet of your financial life: income, debts, assets and more. The lender will request the following documents, so it is very important to

Read More