Understanding Mortgage Options

Choosing the right mortgage is crucial to your home buying success. With various loan types available, understanding your options can help you make an informed decision that fits your financial situation and goals.

Conventional Loans

These are the most common type of mortgage, not backed by government agencies. They typically require good credit scores and down payments of at least 3-5%, though 20% down helps you avoid private mortgage insurance.

FHA Loans

Federal Housing Administration loans are popular with first-time buyers because they allow down payments as low as 3.5% and accept lower credit scores. However, they require mortgage insurance premiums.

VA Loans

Available to eligible veterans and service members, VA loans offer competitive rates with no down payment required and no private mortgage insurance. These are among the best loan programs available.

Fixed vs. Adjustable Rates

Fixed-rate mortgages maintain the same interest rate throughout the loan term, providing payment stability. Adjustable-rate mortgages (ARMs) start with lower rates that can change over time, potentially saving money initially but carrying more risk.

Loan Terms

While 30-year mortgages are most common, 15-year loans offer lower interest rates and faster equity building, though with higher monthly payments. Consider your budget and long-term financial goals when choosing a term.

Work with a knowledgeable loan officer to compare options and find the mortgage that best fits your situation. Don't just focus on interest rates consider all costs and terms when making your decision.