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First Time Home Buyer
Refinance Your Mortgage
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Financing Your First Home
When it comes to financing your first home, you have options. Each loan has its advantages and disadvantages. It's important for you to make sure you choose the right loan for your particular situation. We can help you choose the right loan by analyzing your situation and giving you our recommendation.
Most people feel that you should always get a traditional 30 year fixed rate mortgage. If that was the case there wouldn't be any other options, but the old saying "one size fits all" does not apply to obtaining a mortgage. These days there are several different options for a home buyer to choose from. The options that we recommend the most are: 30 and 15 year conventional fixed rate mortgages, FHA fixed rate mortgage, and a VA fixed rate mortgage.
When it comes to financing your first home, you have options. Each loan has its advantages and disadvantages. It's important for you to make sure you choose the right loan for your particular situation. We can help you choose the right loan by analyzing your situation and giving you our recommendation.
Most people feel that you should always get a traditional 30 year fixed rate mortgage. If that was the case there wouldn't be any other options, but the old saying "one size fits all" does not apply to obtaining a mortgage. These days there are several different options for a home buyer to choose from. The options that we recommend the most are: 30 and 15 year conventional fixed rate mortgages, FHA fixed rate mortgage, and a VA fixed rate mortgage.
Conventional Fixed Rate Mortgage
A fixed rate mortgage will secure your interest rate and never allow it to adjust over the term of the loan. The most common terms are 15 years and 30 years, but are also available with 10, 20, and 25 year terms as well. The longer your term, the lower your monthly payment will be, but you will pay more interest over the life of the loan. The shorter your term, the higher your monthly payment will be, but you will greatly reduce the amount of interest you will pay over the life of the loan. For example, if you take a 30 year loan you will make 360 principal and interest payments - one payment a month for 30 years before your mortgage would be paid off. If you were to take a 15 year loan you would only make 180 principal and interest payments - one payment a month for 15 years before your mortgage was paid off.
The biggest benefit to having a fixed rate mortgage is that your interest rate and monthly principal and interest payment will never change. You have the option to choose the term length depending on your budget and overall goals. If your goal is to pay off your mortgage faster, then a 15 year mortgage may be right for you. If your goal is to get the lowest monthly payment then a 30 year term may be what you're looking for instead.
A fixed rate mortgage will secure your interest rate and never allow it to adjust over the term of the loan. The most common terms are 15 years and 30 years, but are also available with 10, 20, and 25 year terms as well. The longer your term, the lower your monthly payment will be, but you will pay more interest over the life of the loan. The shorter your term, the higher your monthly payment will be, but you will greatly reduce the amount of interest you will pay over the life of the loan. For example, if you take a 30 year loan you will make 360 principal and interest payments - one payment a month for 30 years before your mortgage would be paid off. If you were to take a 15 year loan you would only make 180 principal and interest payments - one payment a month for 15 years before your mortgage was paid off.
The biggest benefit to having a fixed rate mortgage is that your interest rate and monthly principal and interest payment will never change. You have the option to choose the term length depending on your budget and overall goals. If your goal is to pay off your mortgage faster, then a 15 year mortgage may be right for you. If your goal is to get the lowest monthly payment then a 30 year term may be what you're looking for instead.
FHA Fixed Rate Mortgage
An FHA fixed rate mortgage is very similar to a conventional fixed rate mortgage. You have the option to choose between a 30 year term and a 15 year term depending on your overall goal. What makes an FHA fixed rate mortgage one of our most popular programs is the low down payment and flexible credit requirements. FHA only requires 3.5% down payment and can get a borrower with less then perfect credit approved*. The only real disadvantage of an FHA loan is the mortgage insurance premium (MIP). It works very similar to the private mortgage insurance (PMI) found on conventional loans. The biggest difference is that with FHA even if you put 20% or more down on the home you still need to pay the MIP for a minimum of 5 years. Thankfully, the monthly cost of MIP is typically half that of the cost of PMI.
* Subject to limitations, this does not constitute or otherwise imply an offer of credit.
An FHA fixed rate mortgage is very similar to a conventional fixed rate mortgage. You have the option to choose between a 30 year term and a 15 year term depending on your overall goal. What makes an FHA fixed rate mortgage one of our most popular programs is the low down payment and flexible credit requirements. FHA only requires 3.5% down payment and can get a borrower with less then perfect credit approved*. The only real disadvantage of an FHA loan is the mortgage insurance premium (MIP). It works very similar to the private mortgage insurance (PMI) found on conventional loans. The biggest difference is that with FHA even if you put 20% or more down on the home you still need to pay the MIP for a minimum of 5 years. Thankfully, the monthly cost of MIP is typically half that of the cost of PMI.
* Subject to limitations, this does not constitute or otherwise imply an offer of credit.
VA Fixed Rate Mortgage
Our VA loan is a great option for any man or woman currently serving in the U.S. Military or anyone who has served in the past. Surviving spouses can also take advantage of our VA Mortgage. We offer a 30 fixed rate and a 15 year fixed rate for those who want to pay off their mortgage early.
* Subject to limitations, this does not constitute or otherwise imply an offer of credit.
Our VA loan is a great option for any man or woman currently serving in the U.S. Military or anyone who has served in the past. Surviving spouses can also take advantage of our VA Mortgage. We offer a 30 fixed rate and a 15 year fixed rate for those who want to pay off their mortgage early.
- No down payment required
- Qualify up to $417,000
- Qualify with less then perfect credit*
- The seller can contribute towards your closing costs
- No monthly private mortgage insurance (PMI) payment
- The VA upfront funding fee can be added to your base loan amount
* Subject to limitations, this does not constitute or otherwise imply an offer of credit.
Conclusion
Your particular situation and financial goals are factors that will definitely help you choose which mortgage is right for you. Just remember that the right mortgage can benefit you but the wrong mortgage can cost you in the long run. Do your homework and talk to your lender to find out which loan is right for you.
Your particular situation and financial goals are factors that will definitely help you choose which mortgage is right for you. Just remember that the right mortgage can benefit you but the wrong mortgage can cost you in the long run. Do your homework and talk to your lender to find out which loan is right for you.
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