Navigating the complex world of mortgages can be daunting. There are so many loan options available! However, choosing the right mortgage is crucial.
To help demystify the process, here’s a rundown of the loan types available in today’s market. Understanding the differences between mortgages empowers you to make informed decisions. Keep reading to find out more.
Fixed-Rate Loan
Enjoy the stability of the same interest rate for the entirety of your loan term.
Buydown
Temporarily lower your interest rates and payments by prepaying interest. Either the buyer or seller shoulders the cost.
Balloon Loan
Benefit from lower rates with this fixed-rate loan due in full after a shorter period. Often, there’s the possibility to renew or convert.
Graduated Payment Mortgage (GPM)
Ease into homeownership with initial lower payments. These payments gradually increase over time (typically over five years).
Adjustable Rate Mortgage (ARM)
A flexible loan option where the interest rate adjusts periodically based on a specific financial index.
FHA Loan
Backed by the Federal Housing Administration, these loans feature low down payments. They are accessible even with lower income. FHA loans are available in various forms including fixed-rate, ARM, and GPM.
VA Loan
Exclusively for eligible veterans and military personnel, these loans offer fixed loans with no down payment that are guaranteed by the Veterans Administration.
Community Homebuyers Program
Low down payment, no cash reserve, and relaxed income requirements define this fixed-rate loan. This loan is perfect for those meeting certain income thresholds.
Mortgage Credit Certificate (MCC) Program
A boon for first-time buyers that offers a tax credit to help qualify for a loan.
California Home Finance Agency (CHFA)
Tailored for first-time buyers, this state-sponsored program combines low down payments with competitive rates. These are available as conventional, FHA, or VA loans.
Choosing the right loan can transform your home buying journey. In your quest for the perfect loan, consider Allycyn Bennett of Sandstone Financial. With over 30 years of experience, she’s closed over $90 million in loans in just one year. Her success rate of 99.3% shows her careful approach. Allycyn doesn’t believe in one-size-fits-all solutions. Instead, she tailors each loan to fit her clients’ unique needs. Whether you’re new to the process or financially savvy, Allycyn can help. Reach out to her today at 949.717.7290 or abennett@sandstonefin.com for a successful loan experience. You can also visit Bennett4Mortgage.com for more information.
