Top 4 Mortgage Loans for Homebuyers
4 Loan Products Explained
Home lenders provide various loan products to homebuyers. However, having to choose among them isn’t hard when you can comfortably differentiate them. Unfortunately, statistics show that many borrowers don’t know the different types of mortgage loans, leaving alone differentiating them.
The sheer quantity of mortgage options formulates an opportunity to which every homebuyer can fit. As a prospective buyer, Home Financing Center wants to inform and explain various loan products we offer to residents of Miami and the surrounding areas. Contact us today to get started!
These are the kinds of loans that maintain the mortgage interest rates throughout the loan period. This means all your monthly payments will be uniform. For instance, if you have a 20-year fixed mortgage loan, your principal plus interest payments amounts will be the same each month for those twenty years.
If you want to reduce the amount you pay for each month, you might consider stretching your payments for a more extended period.
The second loan type you would need to know about is the adjustable-rate mortgage, commonly known as ARM. It is the difference of the fixed-rate mortgage since the interest rates are lower but can adjust or change over the loan life. There is, however, a fixed interest payment for several years before it can shift to a variable rate.
It is important to note that change means increasing after the initial fixed period.
These loans are conventional mortgage types that come with non-conforming limits. You should know that Freddie Mac or Fannie Mae doesn’t back jumbo mortgages, so the requirements are strict compared to other types of loans.
They are mainly given when purchasing a high-value home with a specific dollar amount — for instance, half a million dollars or more. The loans are periodically adjusted and vary throughout various counties. It’s advisable to find a mortgage broker to counter the complexities of this loan. Call the Home Financing Center to get the best help.
This is the kind of loan given to 62 years or older homeowners. Unlike a traditional home loan, the lenders pay you monthly instead of the other way round. However, what you receive is based on the life expectancy of the individual. This means that if you’re way older, you get to pull more equity. A reverse mortgage is of two types: a fixed-rate, consisting of a lump-sum payment, and an adjustable-rate, consisting of various payment options.
It is crucial to deal with a reputable mortgage broker to help you understand various mortgage types and choose the right one for you. In addition, there are several other types of mortgages available to homeowners. Visit Home Financing Center in Miami to learn more.