Mortgage Loan Options

Checking into the various mortgage loan options that are available is always a good idea for any potential borrower. Only by thoughtfully examining the various terms and types of mortgages that financial institutions may offer can a buyer know what plan will work best for them. There are many kinds of mortgages that a borrower might choose from. There are conventional fixed rate loans, adjustable rate loans, FHA loans, or VA loans. In addition to these mortgages, there are other types of financing that are geared for very specific needs. The jumbo loan is generally used to purchase homes that are priced near a half a million dollars or more. The bridge loan is used to cover any gaps in time between the purchase of a new home and the sale of a previous home. On the other end of the spectrum, there are several programs that are aimed at helping lower income individuals achieve home ownership. In addition to these mortgages, there are also interest only loans, construction loans and balloon payment loans to choose from. With all of the available choices, it is easy to see why a potential borrower should not only make sure that they are informed on the kinds of financing that can be utilized, but also find a reputable financial professional to help guide the borrower through the various mortgage loan options.

One of the many available mortgage loan options is the conventional fixed rate mortgage. Many borrowers prefer this type of financing to any other. The reasons for this preference may vary but will usually center on the fact that a borrower will know that their payment will remain largely the same over the life of the loan. If interest rates should rise dramatically after the initial financing has taken place, a buyer will benefit from interest rates that will remain much lower than the prime rate that new buyers can obtain. Of course, should interest rates go down, the buyer will face the choice of sticking with the rate that is attached to their mortgage or to pursue refinancing. Any home owner who is planning on remaining at the same address for many years to come would be wise to choose this type of home financing. Some lenders will also offer special programs for first time buyers and will occasionally allow for larger debt for borrowers who choose these mortgage loan options.

ARMs, or adjustable rate mortgages are also popular mortgage loan options. This kind of financing allows the homeowner to seize an interest rate that is lower than those associated with fixed rate financing. For the home buyer who is planning on moving in just a few years, this option might be a good choice. The amount of money that is saved in interest payments can be considerable. But if the home owner changes plans and opts to stay put, the interest rate that is being paid will do anything but stay put. Rates with this type of financing will rise as the years pass. ARMs will generally have varying schedules for when the interest rates that are attached to the loan will be re evaluated. The Bible talks about the strength that God offers to believers. "My flesh and my heart faileth: but God is the strength of my heart, and my portion for ever." (Psalm 73:26)

For potential home buyers who might face an uphill struggle when it comes to obtaining the needed financing to purchase a home of their own, various affordable housing programs can present viable mortgage loan options. These programs will generally decrease the amount of down payment that a potential borrower will need to come up with. These programs could be geared toward first time buyers with good credit, but lower incomes. A construction or rehab loan is financing that can help a borrower either build a new house or rehab a house that is in serious disrepair. In most cases, the borrower will pay the interest only on these loans while the home is under construction or is being remodeled. Once the work is complete, a mortgage will pay off the construction loan and provide long term financing for the home owner. If a home owner is living in a house that needs repair, they can also look into refinancing that will allow them to attain the funds to complete the home repair by borrowing against the equity in the property. The Federal Housing Administration also offers a variety of financing opportunities for qualified buyers. Veterans may be able to attain home financing with the help the Department of Veterans Affairs. Jumbo loans present additional mortgage loan options that are aimed at luxury housing and provide financing for homes of up to three million dollars.

Of course, mortgage loan options do not end here. There are also balloon mortgages and no doc programs. Balloon financing offers regular monthly payments that will end at a pre determined time. When these payments end, the amount left on the loan is due. This last payment is called the balloon payment. Such an approach can save on monthly payments as long as the home owner is not planning on staying in the home for years and years or is willing to refinance before the lump payment comes due. A no doc program caters to borrowers with a good deal of assets but little in the way of income, or has income that may be hard to provide documentation for. A borrower's credit rating is the primary criteria for this kind of financing.

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