TYPES of MORTGAGES There are a variety of types of mortgages AND many different mortgage programs to fit every buyer and every situation. Relocating without a job, bad credit, no credit, no money down, investment, etc. if you fit into one of these categories you need to speak with a qualified mortgage manager. FIXED RATE Consider a fixed rate mortgage if: You plan on living in your new home for many years, and/or you are not a risk-taker and prefer the stability of knowing how much your payment will be each month. Since most home loans are for a period of 30 years, if you want a payment you can count on for that long of a period of time, a fixed rate mortgage may be what works best for you. You'll have the same payment every month for the life of the loan. The following are descriptions of the varying lengths and terms of fixed-rate mortgages: 15-Year Fixed-Rate:
You to pay off the loan in half the time of a 30-year loan. Equity builds up more quickly than in a 30-year loan. 20-Year Fixed-Rate: You to pay off the loan in 2/3 the time of a 30-year loan. The overall interest paid is considerably less than for a 30-year loan. 30-Year Fixed-Rate:
The most common choice, especially for first-time homebuyers, as it's the easiest of the fixed-rate loans to qualify for. ADJUSTABLE RATE MORTGAGE (ARMs) If you are more comfortable in taking a risk or if interest rates are very high at the time you take out your loan, an adjustable-rate mortgage (ARM) may be the solution for you. You might also choose this type of loan if your planned ownership of the property is short-term or if you expect your income to increase to cover any potential rise in the interest rate. If neither the fixed-rate nor the adjustable-rate mortgage seems the best option, perhaps the convertible ARM will be right for you. This alternative combines the initial advantage of an ARM with a fixed rate after a predetermined number of years. GOVERNMENT LOANS VA Loans: Veterans may qualify for a loan from the Veterans FHA Loans: The Federal Housing Association offers loans to lower-income Americans. Contact a Mortgage Representative MARISSA SHERON, Loan Officer For answers to your questions CONTACT Marissa: Homestead Financial Services, Inc. 4549 Main Street Suite 204 Amherst, New York 14226 OFFICE: 716-839-5771 ext 205 MOBILE: 585-356-2061 msheron@homesteadfinancial.net Go to: Homestead Web Site
CONVERTIBLE ARMs
Another mortgage option available to some people is a government loan, providing that you meet the qualifications for these loans.
Administration. There is a limit on the amount you can borrow.
