The 5 Most Popular Types of Mortgages
In today’s financial marketplace, there are many options when it comes to choosing the right mortgage loan that will best suit your needs. The mortgage bankers at First Ohio Home Finance will listen to your unique situation and create a mortgage loan or product that is right for you. In order to help you better understand the different types of mortgage loans that we offer for our customers we have put together a mortgage loan list. Here are some of the most popular types of home loan products.
Traditional 30-year fixed mortgage: The 30-year fixed mortgage rate is perhaps the most popular of all mortgage products. As the name implies, this mortgage has a 30-year repayment period with a fixed rate. If you choose this loan, you benefit from knowing that the interest rate will never increase.
Adjustable Rate Mortgage (ARM): This loan typically offers a very low rate, and over time that rate increases until it reaches a capped amount. This can vary by loan, so be careful when choosing. Many people still like this loan because it allows them to get into the house they want at a low rate, knowing that they can refinance at a later date. This option is also popular for first-time home buyers who only see themselves staying in the home for about 5 years before selling.
Interest-Only Mortgage Loans: With this option, buyers can pay just the interest on their loan for the first 7 or 10 years. The lower, interest-only payments make it possible for some people to afford a home. At the end of the interest-only period, however, the payments will increase because they will need to pay both the interest and the principal.
Jumbo Mortgages: The jumbo mortgage—which is usually written by Fannie Mae or Freddie Mac—is designed for people who receive a larger-than-average loan. Although the loan is large, limits still exist. These usually require paying a higher down payment than most loans.
FHA – VA Mortgages: These mortgages are popular with the average borrower in today’s market. The Federal Housing Administration (FHA)and Veterans Administration (VA) insures mortgages for qualified homebuyers and individuals refinancing with special features like low down payment and lenient qualifying terms.
If you are interested in learning more about the loans that we offer at First Ohio Home Finance and would like to speak to one of our mortgage bankers, contact us here!
