Fixed Rate Mortgages
A fixed rate mortgage is the most common type of mortgage used today. It is a mortgage that has a fixed interest rate for the entire term of the loan. The benefit of a fixed-rate mortgage is that the interest rate and monthly loan payments will stay the same, eliminating any concerns about varying loan rates and payment amounts that fluctuate with interest rate movements. Fixed rate mortgages most commonly come with 15 and 30 year terms.
Adjustable Rate Mortgages
An adjustable rate mortgage is a mortgage option that has an interest rate that can change periodically after the initial fixed rate period (typically 3, 5, 7, 10 years). After the fixed rate period it can become susceptible to annual increases or decreases based on market fluctuations. The benefit of an adjustable rate mortgage is when interest rates are expected to fall, a homeowner could potentially lower their monthly payment with the loweredinterest rate.
The Federal Housing Administration (FHA) is a federal agency within the U.S. Dept. of Housing and Urban Development (HUD). The FHA can offer a potential buyer both fixed and adjustable rate mortgages. FHA’s objective is to assist in providing housing opportunities and is widely used for the first-time home buyers. FHA loans can also be used for refinancing a home. There a many advantages of using the FHA loan including: great for 1st time homebuyers, lower down payment than a conventional loan, down payments can be a gift from a family member.
VA loans are mortgage loans that are guaranteed by the Veteran’s Administration, which is an agency of the federal government that provides services for active military and eligible veterans. There are some extra documents that will be needed to use a VA loan, just be sure to ask your loan officer as to which you will need to provide.
Homestyle Rehab Loan
HSR mortgage provides a convenient way for borrowers to make renovations, repairs, or improvements totaling up to 50 percent of the as-completed appraised value of the property with a first mortgage, rather than a second mortgage, home equity line of credit, or other, more costly financing method. Eligible borrowers include individual home buyers, investors, nonprofit organizations, and local government agencies.
Construction to Perm Loan
A construction perm loan is a long-term permanent loan that modifies a construction loan used to finance a building project. However the closing occurs prior to the beginning of construction. To understand why a construction perm loan is advantageous, you have to compare it to a construction-only loan.
FHA 203K Rehab Loan
This loan allows buyers the ability to finance major or minor upgrades on a home without having to get the work done before closing. Consumers can not buy a home needing foundation repairs without a renovation loan that can handle rolling in of structural repairs.