As a new homebuyer learns more and more about mortgages, their eyes start to glaze over and heads start to spin because of all the options! You’ve probably heard the terms FHA, VA and conventional (fixed) mortgage, but all the terms in any type of mortgage can seem overwhelming. But what kind of mortgage is right for you?
This type of mortgage is very popular because the monthly payments are the same no matter the length of the term of the loan. If you’re planning on staying in the home you will be purchasing for several years, this is often a suggested mortgaged. Fixed mortgages are also good for individuals who want to know that their interest rate will not change, and a fixed mortgage is also good for individuals who want a predictable monthly payment to budget other expenses.
An FHA mortgage offers flexibility for individuals who don’t have a strong credit history. An FHA mortgage can include a down payment as low as 3.5%, and the government insures an FHA mortgage. An FHA mortgage is available in terms of 10, 15, 20, 25 and 30 years.
Veterans Affairs (VA) loans have several perks. VA loans require little or no down payments, no monthly mortgage insurance and can be financed up to 100%.
This is an option if you are purchasing an expensive, larger home. Government-sponsored agencies like Fannie Mae and Freddie Mac determine the amounts you are eligible for. Because of the higher loan amount, jumbo mortgages will typically have a higher interest rate.
While we briefly just touched on the subject of mortgages, hopefully, you have a better reference point of some of the common mortgage types you may have heard of as you have been searching for your new home in Maryland.
Selling Your Home with Simply Referable
The small team of realtors at Simply Referable is deeply focused on creating a memorable selling experience for you and your family. Each of our team members has an area of expertise, and we strive to form lasting bonds with each of our clients. We want to be your go-to realtors every time you or a friend wants to make a change. With local experience, our realtors can help you choose a house that is just the right fit for your family, now and forever. Contact us online or give us a call at 410-983-9045.