Perhaps you are considering the purchase of a home or refinancing an existing home. If so you main concern will be the financing for it. There are numerous types of home mortgages available so you must be sure that you are well informed on each of them.
▪ Conventional Home Mortgages
The basic fixed rate mortgage is the most popular due to its stability. During origination of the loan the interest rate is locked in and stays the same throughout the life of the loan.
Another popular mortgage is the adjustable rate mortgage. The interest on this loan is linked to an index that changes according to the market rates. So year to year the mortgage payment will be higher or lower, depending on the market rates. However, usually this type of loan does come with a cap that limits the amount the rates will increase for your loan. You can use this mortgage to “lock in” a lower rate/fixed for 3, 5, 7 or 10 years.
There is government created home mortgages also. The first was specifically designed for first time home buyers and is known as an FHA loan that usually requires a lower down payment and offers lower interest rates. The next is the VA loan however to qualify for this one must has been an active member of the military or be a surviving spouse of one. Many times a veteran can be approved for a VA home mortgage that includes a very low down payment or none.
▪ Biweekly Loan
This type of loan finds the borrower making a mortgage payment every two weeks rather than the usual payment done month to month, this loan will reduce the term of a 30 year load to 22 ½ years.
▪ Reverse Mortgage
A homeowner must be at least age 62 to be eligible for a reverse mortgage. A reverse mortgage does not consider a minimum income or credit score but the homeowner must have equity in the home.
Talk with your loan consultant sharing your specific situation and future plans, this will assist your loan consultant in guiding you to the right home mortgage product, be sure to call Jeff at The Mortgage Network of Ohio, Inc. 513-346-4070 X 10.