A mortgage is one of the biggest investments you can make. This is why choosing the right mortgage is so important. Fortunately, there are many mortgage options to choose from.
Fixed Rate Mortgages
A fixed rate mortgage is a traditional (and popular) loan that carries a fixed interest rate through the entire life of the loan. This means that your interest rate, and your monthly payment, will never change. For those who want little risk and predictable payments, the fixed rate mortgage may be the best option.
Adjustable Rate Mortgages
An adjustable rate mortgage typically comes with a low interest rate in the beginning, but the rate is not fixed. The interest rates on these mortgages (and the payments) fluctuate based on market interest rates. This rate may adjust annually or more frequently, depending on the terms of the mortgage. An adjustable rate mortgage should only be considered if you think you can manage the fluctuating payments. If you cannot afford the payment at its highest, you will be better off with a fixed rate mortgage.
Jumbo Mortgage Loans
Many lenders choose to follow the Fannie Mae or Freddie Mac guidelines for loans. These guidelines limit the amount of money that can be borrowed ($252,700). If you need a mortgage loan for a higher amount, you will need to purchase a jumbo mortgage loan. Jumbo loans are a wonderful option for those who can afford a significantly higher monthly payment. Here is a list of recommended Home Mortgage Lenders online. It's important to use a reputable lender online to make sure your personal information is secure.
Balloon Mortgage Loans
Because the loan is due in full after five to seven years, a balloon mortgage loan usually has a lower interest rate than a conventional 30-year loan. If the loan cannot be paid off at that time, a second mortgage must be purchased. This type of mortgage is good for those who will be selling their house before the loan is due, or for those who need a lower payment and are confident in their ability to refinance when the time comes.
For a fixed or adjustable rate loan, check out ABC Loan Guide’s list of Damaged Credit Home Mortgage Loans. Also, view our suggested lenders for a Jumbo Home Loan.
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