There are many varieties of mortgages to home buyers and the differences can seem overwhelming at first. The two primary characteristics are the length of the mortgage and whether or not the interest rate is fixed or adjustable.
-
Conventional vs. FHA
Rates It is not uncommon for FHA to offer lower interest rates than conventional loans. – Score 1 for FHA Down Payment FHA require 3.5% down while Conventional Loans require 5% or more down Mortgage Insurance Here is where conventional loans start to gain speed. Most FHA borrowers are using this program to take advantage of […]
Read More
-
30 vs 15 Year Mortgages
The 30 year mortgage is the most common type of home mortgage. This mortgage is popular due to its low monthly payments. However since the loan is spread out over 360 monthly payments, the borrower will end up paying a higher total price with the extra interest. 15 year mortgages are a less common type of […]
Read More
-
Adjustable Rate Mortgage
The most common way to refer to a Adjustable Rate Mortgage is as an “ARM”. Typically an ARM has a fixed period and then an adjustment period. Generally, the initial interest rate during the Fixed Period would be lower than the prevailing interest rate on a Fixed Rate Mortgage. This difference in rate is essentially […]
Read More
-
Fixed Rate Mortgage
The fixed rate mortgage is the most common type of mortgage where your monthly payments for interest and principal never change. Property taxes and homeowners insurance may increase, but generally your monthly payments will be very stable. Fixed-rate mortgages are available for 30 years, 20 years, 15 years and even 10 years. There are also […]
Read More
