In the market for a home mortgage? Choosing a mortgage can be a daunting task. Potential home owners should make sure to choose the mortgage that is the best fit for their current needs and future plans. Apply online to contact a home mortgage expert.
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Here are some terms you will need to understand while shopping for a home mortgage:
- Fixed rate mortgage – this type of mortgage has a fixed interest rate as
well as a fixed term, meaning that the rate, term and monthly balance are
set at the beginning of the loan and do not change through out.
- Adjustable rate mortgages (ARMs) have more lenient credit and income requirements,
but the interest rates rise and fall with the market, so the owner could end
up paying more or less than initially anticipated.
- FHA loan a mortgage or loan that is insured by the federal government
through the Department of Housing and Urban Development. This insurance allows
lenders to lend more to less qualified applicants with lower interest rates
and low down payments.
- Veterans Administration (VA) loan like the FHA loan this mortgage is insured
through the federal government for qualified applicants who served in the
military. These loans are especially appealing as they require little or nothing
- Conventional loans loans from private lenders that are not insured by
the federal government.
- Home Construction loan funds the land, labor, materials and permanent
financing for home buyers who are building a home.
Adjustable Rate Mortgages (ARM) were more popular a few years ago than they are today. Today interest rates are at rock bottom and most home buyers are interested in locking in at a low rate. In acquiring a mortgage loan you can expect two payments. One is the interest rates you will pay over the life of the loan, and the other is points you pay up front to reduce this interest rate. Points are typically one percent of the loan amount. The lower the interest rate, the higher the points you pay. Remember the interest you pay is amortized and tax deductable. Your first payment will be the same amount as the last (assuming you don’t refinance) and your money paid towards interest is tax deductable. To learn more and speak with a mortgage broker, fill out our online questionnaire. A broker in your area will contact you promptly and start the process of qualifying for a mortgage loan.
After choosing the loan that best suits your needs and income, it is time to find the lender that can give you the best contract. Fill out our short form to contact up to four home mortgage lenders.