Mortgages come in many shapes and sizes. Which one is right for you? Every mortgage has three key elements: The loan type, a rate, and a term. By knowing how these elements work together, you will be able to pick out the best mortgage for your situation.
Available Home Loans
Whether you are buying a home for the first time or buying your sixth house, we have home loans to fit all needs and situations.
Conventional loans are the go to option. They may be a little harder to qualify for versus an FHA loan but they typically end up being cheaper in the long run. You can avoid paying private mortgage insurance with down payments greater than 20%.
FHA or “Federal Housing Administration” is a government administered loan that is easy to qualify for. They require low down payments and allow lower credit scores, but are generally more expensive to own over long periods of time. This is because they feature a funding fee as well as increased mortgage insurance requirements to protect the lender from default.
First Time Home Buyers Loans
Buying a home for the first time can feel like a daunting task. Fortunately, those navigating the home buying process for the first time can apply for a first time home buyers loan. Unlike conventional loans, first time home buyers loans require allow home buyers to put down a small down payment, sometimes no down payment is required at all.
VA Loans are exclusive to veterans, eligible surviving spouses, and active-duty service members. VA loans offer these groups the option to buy homes with no down payment and no private mortgage insurance. Furthermore, the rates offered to VA eligible borrowers are much better than conventional interest rates.
Will You Help Explain Each Option To Me In More Depth?
Yes! We often find that people can get confused when deciding on which option is best. We will do our best to give you the information you need so you can make the right decision.
There are two types of mortgage rates, and they are fixed rates and adjustable rates. Fixed Rates stay the same for the life of the loan. Your month to month mortgage payment will always stay the same. Adjustable rates are fixed for a certain period of time (usually 3, 5, 7 or 10 years) and then adjust up or down once per year according to market conditions.
Benefits Of Fixed Rates
- Fixed rates will stay the same for the life of the loan.
- You can easily keep track of future payments and housing expenses, these will never change.
- If interest rates go up, yours will stay the same.
Benefits Of Adjustable Rates
- They are usually lower than fixed rates initially.
- If rates go down, your rate will adjust downwards as well.
- Great if you plan on moving or refinancing after the initial fixed period ends.
Reach Out To Experienced Georgia Mortgage Brokers
Before deciding on which home loan to choose, reach out to the experienced Georgia mortgage brokers at MyLendingPal who can provide insights and learn more about your needs to properly choose your home loan. For more information or to get in touch with a mortgage broker, give us a call at 833.379.0797 or contact us online.