Whenever a person buys a house, they feel both excited and scared. Once you found the home of your dreams, and you are ready to buy it, how can you decide what mortgage type will fit your needs? Should you choose an FHA loan, an adjustable loan, a fixed rate loan or something else?
There are many kinds of loan options that may or may not fit your needs, and we are here to help you choose. If you need a loan that can provide consistent payments and rates or short-term benefits for lower rates, you’re in the right place! We have compiled or the available loan options just for you!
Here are some of the most common types of loans that you can choose from.
Adjustable Rate Loan
This is a loan with a lower fixed rate for usually 5 to 7 years of the introductory term. After this, it will adjust up or down every year. You might want to consider this loan type if you are not planning on staying in your home after the initial term. You can take advantage of the lower payments and interest rates.
Fixed Rate Loan
This is a loan with a fixed interest rate which will remain the same throughout your loan’s term. You might want to consider this loan type if you’re going to have a peace of mind which comes with stable monthly payments. You can use this to plan on as you slowly work towards any of your financial goals for the future.
Interest Only Loan
For a set term, this loan has an interest-only payment. After this, the mortgage payment will go up to the interest and full principal amount. You might want to choose this loan type if you are planning on staying in your home for a long time if you know that your income will increase in the future or if your monthly income is inconsistent.
The FHA loan is a type that’s guaranteed by the government. It often offers lower down-payment requirements and lenient qualifying guidelines compared to other kinds of loans. If you are buying a house for the first time and want to take advantage of the benefits of this FHA Loans Corpus Christi, then choose this type of loan.
Lastly, the VA loan is backed by the U.S. Department of Veterans Affairs. It offers different benefits including no mortgage insurance requirement and 100% financing. If you are a surviving spouse of a veteran, an actively serving member of the military or is a veteran, you might want to consider this.
Which loan type did you choose?
After choosing the type of loan you want, the next thing you need to do is work with a knowledgeable loan advisor. He or she can assist you in selecting the home mortgage program that will fit your needs as well as answer a few questions. Having a professional advisor can help simplify the mortgage process and help you avoid mistakes that most first time home buyers make.