Types of Mortgage Loans Offered
Refinance and Purchasing
Fixed Rate Mortgage Conventional Mortgages. A conventional mortgage offers a fixed rate. They typically come in 10, 15 or 30-year loans. Although conventional loans used to require 20% down, most people used to put down 10% down. In the current 2009 market, 20% or more is not uncommon. Just understand that if you put less than 20% down, you'll be required to obtain private mortgage insurance (PMI). If you're a first-time homebuyer, there are numerous low down payment home loans available that only require 3.5% such as FHA or even "0 %" for VA loans.
Adjustable Rate Mortgages Adjustable rate mortgages feature an interest rate that adjusts to maintain pace with current market rates. This is a wise choice for buyers who are intending to stay in their home for a short period. If your strategy is to stay in the property for a longer period of time, it is recommended to lock-in today's low fixed rates with a standard loan. To determine if an ARM is the right loan for you, review the following:
- Will I be able to keep up with higher mortgage payments if interest rates rise?
- Will I be making other substantial purchases in the near future like an automobile?
- How long do I plan to own this home?
FHA Mortgage Loans. Mortgages by The Federal Housing
Administration (FHA) assist low-to-moderate income home buyers buy homes with
low down payments (currently 3.5%). In addition, these government loans are normally assumable by the next qualified home owner when you
sell your home, which is an attractive benefit when the time arrives to sell.
VA Mortgage Loans. The Department of Veteran Affairs loans are excellent due to them offering you the chance to purchase a home with zero down payment. To qualify for a VA loan, the veteran or armed services member must be on active duty
or have a discharge (that is anything other than dishonorable).
Stated income mortgage programs are tailored and designed for those who have trouble documenting their income, rather than for folks who simply do not earn enough money. It is not meant to be a home loan to give borrowers, mortgage brokers or lenders an opportunity to lie about income. Falsifying documents on a mortgage loan application is a federal crime and you could be punished with prison time and or a fine. You should not ever allow anyone to talk you into stating a income substantially higher then you actually earn.
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