Interest rates on mortgages change frequently. Determining what rate someone qualifies for can be affected by things like credit history, the principal amount of the loan, the length of the loan payment schedule, how much of a down payment is made, and other factors.
There are different types of mortgage loan products out there. Conventional fixed rate loans are probably the best known and understood mortgage. It typically is a 15, 20, or 30 year loan that has the same interest rate for the duration of the loan.
The key is to work with someone you trust who can help you determine which loan is right for you. I can help you with all of your questions! We can talk about different loan products, income and debt ratios, credit scores, credit history, and more. Often people think they can't afford to buy a house, but after talking with me they find out they CAN OWN A HOME! |
FHA loans are not only for first time home buyers or people with lower credit scores. FHA loans are a great option for many home buyers. Here's some facts about them:
- Requires a minimum 3% cash investment from the buyer (calculated on the loan amount)
This is important to any buyer who does not have 5% or more to put down on a home. Many of the past conventional loans that were available and required less than 20% down are no longer out there.
- Downpayment money can be gifted from a bonafied family member to fulfill the 3% requirement.
- Mortgage insurance on a FHA loan is calculated at a lower percentage than it is on a conventional loan.
- FHA does not have the same guidelines regarding credit scores that make conventioal loans unavailable to some buyers.
- The maximum amount that can be financed FHA is $271,050. This is not the maximum purchase price, but a cap on the amount that can be financed.
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