Which Mortgage is Right for You?


There are a number of different types of home loans available.  Here’s a look at them.


30-Year Fixed Rate Mortgage

This is the most common type of loan, as the steady interest rate means you can plan on a consistent monthly payment.  This provides you with the ability to budget and plan ahead.  It’s probably the best option to choose if you're planning to stay in your home for a minimum of 5-10 years.


15-Year Fixed Rate Mortgage

The shorter loan term and lower rate allows you to pay off your home twice as fast as with a 30-year fixed rate mortgage. Like the 30-year loan, your rate stays the same throughout the life of the loan.  But because you are paying less interest, you can pay off the loan faster.  Between the shorter term and the lower interest rate, you will save a lot of money in the long run.


Adjustable Rate Mortgage (ARM)

This type of loan is most popular when longer term loans are at a much higher interest rate, or when you want to keep your payments as low as possible because you’re planning to move within a few years. This type of home loan features an interest rate that changes after a fixed amount of time, with a “rate cap” that stipulates the maximum rate that the interest can adjust to over a specific time.


Jumbo Loan

If you’re looking for a loan that exceeds the current conforming limit (which varies by state and county), then a jumbo mortgage can help you make your move.  This type of home loan will allow you to buy a lot of real estate – so if you’re looking at a pricey “forever home” it may be the right loan for you – but it can also requires more stringent credit guidelines and a larger down payment.


FHA Loan

FHA loans are super popular with first-time home buyers because they have lower down payment options (as low as 3.5% down) and they offer more flexible credit restrictions.  If you haven’t been able to save up a big down payment, or if your credit score is less than stellar, an FHA loan can make it possible to get a mortgage and make you a home owner.  FHA loans can be adjustable rate or fixed rate.  With an FHA loan you will be required to pay PMI (private mortgage insurance), which will be covered in a separate blog! 


VA home loan

A VA loan is available solely to those who are veterans or active-duty service members.  This military type loan offers less restrictive credit guidelines and low down payment options – as low as 0% down! It’s just one way to thank our service members!