What’s the Best Home Loan Option for Me?

What’s the Best Home Loan Option for Me?

As a homebuyer, your mortgage is specific to your situation and lifestyle. There are many different factors to consider when thinking about which home loan option is best for you. While one buyer may be comfortable paying a 20% down payment, another buyer may need down payment assistance. How long you plan on living in your home can also play a role in which type of home loan to choose. We will give a brief overview below of some options, but it is best to reach out to one of our loan officers for the full breakdown.

One loan option to consider is a fixed-rate mortgage. A fixed-rate mortgage has an interest rate that stays the same for the entire life of your loan. This offers a predictable monthly payment for a term of 10-30 years. This type of loan is best suited for a buyer who intends to stay in their home for a long period of time. Highlights of a fixed-rate mortgage are

  • Interest rate security
  • Monthly payment stability

Another option to consider is an adjustable-rate mortgage (ARM). An ARM is a mortgage in which the interest rate is adjusted periodically based on an index. An ARM is a good option for buyers who are planning to move into a different house within the next few years. Depending on the type of ARM, the interest rate and monthly payment will fluctuate every adjustment period. An adjustment period is a period between each rate change, such as 5/1 – meaning the first-rate reset takes place after five years and continues to reset each year for the life of the loan. Highlights of an adjustable-rate mortgage are:

  • Low starting interest rate
  • Lower monthly payments during the initial term

Buyers who need assistance with up-front fees may consider Down Payment Assistance (DPA) Loans. State Housing Finance Agencies offer state-specific programs to residents who need help purchasing a home. These programs can be in the form of a loan or grant and assist with closing costs, down payment, and even student debt relief. Highlights of DPA loans are:

  • A lower amount of money is required up-front
  • State-specific programs to assist most buyers

First Home Mortgage offers a variety of loans that can meet your needs. While reading about different loan types online is a great way to get started, to know exactly what option is best for you, it is wise to talk to a mortgage professional. Get in touch with a First Home Loan Officer near you to fully outline your situation and goals and tailor a plan.

Related Posts

What to Know Before Buying a Flipped Home
What to Know Before Buying a Flipped Home

House flipping is when someone buys a home, usually for “cheap,” with the express purpose of remodeling to increase its value and sell it for a profit. As shown by the nearly countless television shows made about flipping, the final result can be very impressive, but is buying and living in a home that has […]

June 03, 2022
Full Post
5 Real Estate Scams to Watch Out For
5 Real Estate Scams to Watch Out For

Whether you’re buying, selling, or refinancing a property for the first time or fifth, you’re going to be balancing lots of information, paperwork, communications, and transactions. It can be easy to get overwhelmed, and unfortunately, there are individuals out there who may try to take advantage of you during real estate transactions. Below are five […]

April 28, 2022
Full Post
Bridge Loan Program
Bridge Loan Program

Buying a new home is always a big undertaking, and the current seller’s market can make the process even more challenging. With limited inventory and frequent bidding wars, buyers can feel a natural uncertainty in landing the house you want. Selling your current home before finding your next one can be even more stressful, since […]

March 24, 2022
Full Post

Connect With Us