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Posts Tagged ‘FHA Loans’

When it comes to mortgage loans, one size does not fit all. Borrowers searching for mortgage loans or interested in refinancing their existing one will discover that there are many choices available to them. This article gives basic information about some common mortgage types, but for more specific advice and information, be sure to discuss your options with your mortgage lender.

While it may seem like borrowers have many options, it is important to remember that there are actually two types of mortgage categories: adjustable rate and fixed-rate. The most traditional type of mortgage, and also the most popular today is the 30-year fixed rate mortgage, which is chosen by borrowers who usually plan on staying in their homes for many years and are looking for a stable, predictable mortgage payment structure.

Other common types of mortgages are the type that are fixed rate for a specific, and shorter period of time, like the 15-year fixed rate mortgage, which allow borrowers to pay less total interest but typically require highly monthly payments. These are popular mortgage types because of their lower interest rates and stability in terms of monthly payment amounts.

With an adjustable rate mortgage, your monthly interest is based on the national interest rate, rather than a fixed rate. Sometimes the national interest rate is lower than the interest rate that you would be paying with a fixed rate mortgage, and sometimes it is higher. There are several different types of adjustable rate mortgages, based on the repayment term of the loan.

When it comes to determining which type of mortgage loan is best for you, your credit score is an important deciding factor. Depending on your score, you may or may not qualify for lower rates and certain types of mortgages. Before you begin the mortgage approval process, be sure to take the necessary steps to repair your credit score.

Many people think FHA loans are for first time home buyers. Maybe they think it stands for “First Home”, but it does not. It stands for Federal Housing Administration. Anyone can apply for a FHA loan, even if you have multiple properties!

A 3.5% down payment is just one of the requirements of a FHA loan and this money can come from a relative. Usually your credit score should be high, but with FHA, you can still get a great 30 year fixed rate. These interest rates are just as good as a conventional loan.

To get a FHA loan, the property has to be your primary residence. A non-occupying person can even co-sign with you for a FHA loan. In most cases, you can have only 1 FHA loan at a time.

If you get a FHA loan, the house has to be your primary residence. If you don’t qualify on your own for a FHA loan, you can get a non-occupying co-signer to help you. You can only have 1 FHA loan at a time, but there are sometimes exceptions.

With what people are paying in rent, a mortgage payment could be very close in amount. A FHA loan, 3.5% down, and low interest rates make it possible especially with fallling house prices.