Mortgage Loan Choices
What types of loans are there?
When it comes to finding a mortgage, the possibilities are endless. However, being overwhelmed by choice doesn’t mean you should take whatever is offered to you first. To find the best possible loan when you’re on the market for a new home, you need to get informed first.
Types of mortgages
As previously mentioned, the possibilities are endless, but there are some options that vary from loans backed or insured by the government to adjustable-rate mortgages (ARM). Those insured by the government are more suitable for those buyers with low credit scores and not enough money for a down payment. On the other hand, borrowers that can afford higher mortgage payments two or three years after closing escrow would be okay taking an Adjustable-Rate Mortgage.
However, there are a few other options that are more challenging such as conventional loans which require better credit scores and higher down payment. Jumbo loans which better suited for buyers wanting to buy a high-end property and have excellent credit. And lastly, there are those mortgages with a fixed rate offered to those borrowers that want to make sure that their payment is going to stay the same for the life of the loan.
There are a lot of variations and legal terms involved in every type of loan. Each one has its pros, its cons, and its limitations. That’s exactly why is so important to have the right team of professionals working with you and for your best interests. Someone who can explain, educate, and be with you at every step of your homeownership journey.
Please feel free to contact us. Allow us to start those steps by your side by providing you with information about the different types of mortgage loans. We’ll be happy to explain them and help you find one that suits your needs and preferences.