Home Finance

Fixed Rate Loans:  The most popular loan is the fixed rate mortgage because it provides the borrower with a fixed interest rate for the entire loan span, which is normally 15-30 years.  This gives borrowers peace of mind because they are assured that their monthly payment will never change.  Typical fixed rate mortgages have basic requirements through Freddie Mac and Fannie Mae, which also necessitate a down payment and debt-to-equity ratios to be eligible. For homebuyers who intend to remain in the home for longer than 3 years, a fixed rate loan is one of the best options.

Adjustable Rate Loans:  An Adjustable Rate Mortgage (ARM) is one in which the interest rate sometimes changes and the rates increase or decrease according to an index that tracks the worth of money at a specific time.  Lenders normally offer a lower interest rate at first as opposed to fixed mortgages.

If interest rates are expected to decrease or increase or if you want to have as much purchasing power as possible from knowing the future will give you a higher income, then an Adjustable Mortgage Rate is the best choice.  Typically, this type of loan is for buyers who do not expect to stay in the home for very long.

FHA Loans and VA Loans:  FHA loans offer periodic rate changes that can increase or decrease at times for low- to mid-level-income purchasers.  These loans offer lower down payments than fixed mortgages and have no requirements on income, not even to buyers with low credit scores.  Even filing bankruptcy in the past may not disqualify a borrower from the FHA program.

Also available is the VA (Department of Veterans Affairs) program with zero down.  In order to utilize this program, borrowers are required to be veterans in the U.S. Military. Possibly the biggest benefit of this particular program is that it overlooks the need for private insurance.

Local Home Buying Program:  There are numerous state and local programs available for homebuyers. Contact us today to learn about programs, lenders and other options.