A 10/1 ARM loan has a fixed interest rate for the first 10 years. After 10 years, the rate can change once every year for the remaining life of the adjustable-rate mortgage. When the rate changes, your monthly payments will increase if rates go up and decrease if rates fall.
A 7/1 ARM loan has a fixed interest rate for the first 7 years. After 7 years, the rate can change once every year for the remaining life of the adjustable-rate mortgage. When the rate changes, your monthly payments will increase if rates go up and decrease if rates fall.
A 5/1 ARM loan has a fixed interest rate for the first 5 years. After 5 years, the rate can change once every year for the remaining life of the adjustable-rate mortgage. When the rate changes, your monthly payments will increase if rates go up and decrease if rates fall.
If that sounds like you, then an FHA Loan may be right for you.
The most commonly used home mortgage used when purchasing a home today is a 30 year fixed. The lure of the 30 year fixed mortgage is a fixed interest rate and predictable mortgage payments until the loan is paid in full. Payments are more affordable because your payment is extended over 30 years opposed to 20 and 15 year fixed home mortgages. Since the loan term is longer, there is more interest paid over the life of the loan and equity in the home is built more slowly.
Although not as common as a 30 year fixed home mortgage, the 20-year fixed-rate home mortgage helps you built equity in your home faster, and you’ll pay off your loan quicker than a longer fixed rate home mortgage. Also, 20 year fixed rate home mortgages offer a slightly lower interest rate than a 30 year fixed home mortgage. If a 15 year fixed mortgage payment, is higher than what your comfortable with have your loan officer go over the monthly payment on a 20 year fixed home mortgage.
The 15 year fixed rate home mortgage, has gained in popularity during this period of low rates. Rates at all time lows has made the 15 year payoff term more affordable and attractive to homeowners. With a 15 year fixed home mortgage, your loan is paid off in half the time a 30 year fixed home mortgage. Rates for a 15 year fixed home mortgage are considerably lower, and you'll build equity quickly. Make sure the higher mortgage payment is manageable and you have budgeted properly.
Veterans and active members of the armed forces often buy with $0 down and less red tape. Backed by the U.S. Department of Veterans Affairs, VA Loans allow for some of the most flexible qualification guidelines exclusively for members of the armed services or their surviving spouse’s. Only a small upfront VA Funding Fee applies.
You’ve earned the benefit of saving with a VA loan
- Are you a member of the military, veteran or a surviving spouse of a veteran?
- Do you want fast approval and minimal red tape?
- Wanting to purchase a home with $0 down or refinance up to 100% of the value of your home?
If you answered “yes” to any of these questions, a VA loan might be an excellent choice. Qualify for a VA loan with less than perfect credit, VA loans are offered in either fixed-rate or Adjustable-Rate-Mortgages. VA loans never monthly mortgage insurance.
We Make the Process Fast and Simple
Our extensive VA experience enables us to make the VA loan process, smooth and easy for you. Once you get started, your VA Loan officer will be there with you every step of the way, walking you through the process to home ownership.
As you explore your home loan options, you may be curious about jumbo loans. When you’re looking for properties that are more expensive for the geographic area, that is when you’ll want to consider a jumbo loan. The definition of “jumbo” is a loan amount that exceeds $417,000 for a single family residence, except for the states of Alaska and Hawaii, which have a higher conforming loan limit of $625,500. If you qualify, a jumbo loan can be fixed-rate, adjustable rate, and a variety of loan periods are offered between 10 and 30 years. You can make a new home purchase with a jumbo loan. Do be aware that you will still need to work with your lender to make sure the down payment and all associated closing costs are covered.
Jumbo loan programs can have varying interest rates and stricter underwriting requirements depending on where you live. But jumbo loans can vary widely depending on your location and the programs your lender offers. Work with an expert at Loan City Home Loans today and compare all of the possible scenarios so you can be assured you are making the best decision for your family.
Buying a Home? Compare Mortgage Loans
|Information||Current rate||APR||Flexible Down Payment||Easier Qualification||Rate Security||Above Conforming Limit|
Fixed Rate MortgageFixed principal and interest monthly payments that stay the same for the life of the loan
Adjustable Rate MortgageA typically lower rate mortgage for the first 3, 5, 7, or 10 years followed by annual rate adjustments
FHA LoanFixed rate mortgage, backed by government, with flexible income and credit requirements
VA LoanSpecial fixed rate, no down payment loan for eligible men and women of the U.S. armed forces
Jumbo LoanFixed or adjustable rate loan with a larger loan amount than a conforming loan limit
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