How Do I Know Which Type of Mortgage is Best For Me?

How Do I Know Which Type of Mortgage is Best For Me?

The number of different mortgage loans available can be overwhelming; the more you know about the various types before you need to choose one to apply for, the better. If you would like more detailed information about any of the following mortgage loan types, or if you would like to speak to someone about your individual situation and receive assistance in selecting the best loan, Howard Hanna’s Mortgage Loan Originators are always happy to help.


 Fixed-Rate

A mortgage spread over 10, 15, 20 or 30 years where the interest rate remains the same.

  • Advantages
    • Monthly payments are fixed over the life of the loan
    • Interest rate does not change
    • Protected if interest rates increase
  • Disadvantages
    • Higher interest rate
    • Larger mortgage payments
    • Interest rate remains fixed regardless of market fluctuation
  • Worth Considering If You…
    • Plan to stay in the home for a longer period of time
    • Have an established credit history
    • Can put at least 5% down

Adjustable-Rate

A mortgage that offers low initial interest rates and monthly payments, but these can change over time.

  • Advantages
    • Lowest short-term rates
    • Lower initial monthly payment
    • Rates and payments may go down if rates improve
    • May qualify for higher loan amounts
  • Disadvantages
    • Exposure to interest rate risk
    • Payments may change after fixed period
    • Potential for high payments if interest rates increase
  • Worth Considering If You…
    • Know you’ll be moving within the next few years
    • Have an established credit history
    • Can put at least 5% down

FHA

Government-backed loans with flexible guidelines, intended to make home ownership easier.

  • Advantages
    • Low down payments
    • Competitive interest rates
    • Flexible qualification guidelines
  • Disadvantages
    • Lower loan limits
    • Must meet certain guidelines
  • Worth Considering If You…
    • Don’t have an established credit history
    • Have poor credit
    • Have limited funds for a down payment

VA

Government-backed loans for military members or their surviving spouses.

  • Advantages
    • Little to no down payment
    • No mortgage insurance requirement
    • Flexible qualification guidelines
  • Disadvantages
    • Lower loan limits
    • Must meet certain guidelines
  • Worth Considering If You…
    • Are an active military member or veteran
    • Are the surviving spouse of a service member who passed as a result of military service

Mortgage Logo

 

 

 

 

 

Howard Hanna Mortgage Services is licensed by: The Pennsylvania Department of Banking and Securities. The Ohio Department of Commerce – Division of Financial Institutions – License # MB802719.000 and SM 501117.000. The MI Department of Licensing and Regulatory Affairs, Office of Financial and Insurance Regulation. NMLS # PA – 101561 and OH/MI – 203917

 

Leave a Reply

Your email address will not be published. Required fields are marked *