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
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.