15 Year Fixed
One of the main benefits of a 15-year fixed loan is that you can save on interest. Choosing a 15-year fixed loan is best for people who are in search of saving by paying off their loan sooner rather than later. They work by having the interest rate locked in for the life of the loan, meaning you don’t have to worry about rising rates.
30 Years fixed
A fixed-rate mortgage has an interest rate that doesn’t change over the full term of the loan, which, for a 30-year mortgage (as the name suggests) is 30 years. It’s a popular choice for many people because of its stable monthly principal and interest payments ideal for predictable monthly household budgets, at a more affordable cost than shorter-term loans.
VA loans are made by private lenders and can be a more affordable option for eligible homebuyers. VA loans do not require a down payment or mortgage insurance, which other loans usually require with low down payments. Not having the requirement of mortgage insurance, VA loans are one of the best options for eligible buyers since it can add significant cost to the mortgage each month.
FHA loans typically are best for homebuyers with a sub-620 credit score or with a low-down payment. Government-backed mortgage loans, Federal Housing Administration (FHA) loans arefor those who have credit scores of 580 and higher and are in search of 15- or 30-year terms. These are popular amongst first-time homebuyers and require FHA mortgage insurance.
Combining the construction phase and amortizing permanent mortgage in one loan saves you time and money. You only need to qualify once, saving you added stress obtaining a loan to pay off the construction loan. One loan saves you money on closing costs! Closing the loan before construction starts saves you money if interest rates rise once your home is complete.
A Jumbo loan is used for homes that exceed the local conforming loan limit, which is $548,250 in most counties, but can reach $822,375 in many high-cost areas. Due to this higher-priced properties, Jumbo loans are not backed by Fannie Mae and Freddie Mac.
USDA Loans are loans that allow for the flexibility of more affordable living for those wanting to purchase a home in rural or suburban areas. USDA loans are perfect for those in search of a home with no down payment, no cash reserves required, and workable credit options. Backed by the U.S. Department of Agriculture, USDA loans are great for those with moderate or low income.