Mortages...which one is right for you?

Real Estate

What Type of Mortgage is Right for Me?

Today the average home owner moves every 5-7 years.
Depending on 
your needs there are a number of mortgage
options you might consider, each 
with its own advantages
and disadvantages, spending some time to understand

the options is the best way to choose the right loan for your needs.

While loan programs and terms vary, the most common are:


 Conventional - A conventional loan is normally still designed
to be paid off 
in 30 years with equal monthly payments during
the term of the loan. 
There are currently conventional loans
that require as little as 5% down, 
although 20-25% is still
commonplace, to avoid paying PMI (private mortgage
insurance.)


 FHA - An FHA loan is guaranteed by the Federal Housing
Administration and 
is attractive for a number of reasons,
especially for the first time home 
buyer. The down payment
can be as little as 3.5% and that can be a gift.


 VA - VA (Veteran Affairs) is a loan program offered for
Veterans and their 
spouses. While the terms can vary from
0-5% down payment, this loan may 
allow the borrower to
finance as much as 100% of the home’s value in the 
loan.
Your lender will also have more specialized options for you,
such as  ARM (adjustable 
rate loans) and 10 or 15 year loans.
They can also explain the additional costs that 
could be associated
with each type of loan program. 
Part of purchasing a home
is to find the right financing. Your lender will talk you

through your options. If you have not already spoken to a
lender, or if you need a 
referral, your real estate agent is
a great resource for you, throughout the process.