Buying a home is exciting, but the financial side of things can often feel you leaving a little overwhelmed.
The good news is once you learn the lingo, nail down a budget, and secure your down payment, you’ll be more than ready and able to choose which loan option works best for you. ⠀ ⠀
Here are five types of mortgage loans for home buyers:⠀
1. Conventional mortgage: Loans backed by private lenders rather than the government. You can even put down as little as 3%! This is an excellent option if you have a solid credit score. These loans can be used for Can be used for a primary home, second home or investment property.⠀
2. Adjustable-rate mortgage: Loans with low initial interest rates mean significant savings early on. Best for borrowers who aren’t planning to stay in the home for an extended period, would prefer lower payments in the short-term and are comfortable with possibly having to pay more in the future⠀⠀
3. Fixed-rate mortgages: Loans with predictable monthly payments, year after year. This loan type makes it easier to budget housing expenses from month to month, but if interest rates fall, you’ll have to refinance to get the lower rate.⠀
4. Government-insured mortgages: FHA loans, USDA loans, and VA loans, oh my! These government-insured options make home-ownership more accessible if you have less liquid cash or less-than-stellar credit. They are accessible to repeat buyers or first-time home buyers.⠀
5. Jumbo mortgages: Common in high-cost areas, these loans allow homeowners to borrow more money in expensive zip codes with excellent credit scores.⠀
Please let us know what questions you may have! We are happy to help and can also connect you with trusted local lenders in our area for next steps.
To find out an idea of what you can afford and monthly payments, check out our handy Mortgage Calculator by clicking here!