Loan Options

The traditional 15-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. It offers all the advantages of the 30-year loan, plus a lower interest rate. Although a 15-year loan means owning your home much faster, you commit to a higher monthly payment. Some borrowers choose a 30-year fixed-rate loan and then make larger payments to pay off their loan in 15 years.

An FHA loan is a mortgage loan that is insured by the Federal Housing Administration (FHA). The federal government insures these loans for FHA-approved lenders to reduce their risk of loss. Borrowers who cannot afford a traditional 20% down payment may like this loan option, as it only requires a 3.5% down payment.

A VA mortgage loan is available to qualified military veterans, active duty service personnel, or surviving spouses of a deceased veteran (if they do not remarry). It is backed by the U.S. Department of Veterans Affairs (VA) and offers long-term financing, frequently requires no down payment, and has lower closing costs.

An Adjustable Rate Mortgage features an interest rate that will change periodically. The Loans range from being fixed at 3, 5, 7, to 10 years. The initial interest rate is lower than a fixed-rate mortgage but may fluctuate over time. Many consider this option if they only plan to own the home a few years, are expecting an increase in future earnings or current fixed interest rates is too high.

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A Jumbo Loan is a loan that exceeds the conforming loan limits as set by Fannie Mae and Freddie Mac. Jumbo Loans vary per county.  Rates may be a bit higher on Jumbo Loans and higher down payment may be required because lenders generally have a higher risk for these uninsured loans. 

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***Contact me to get info about your county***

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The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. A 30-year fixed-rate loan may be a good option if you plan on staying in your home for many years. This loan
makes it easier to buy a more expensive home, as the longer-term creates
lower payments.

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The baseline conforming loan limit for 2022 is $650,000. The limit is higher in areas where the median house cost exceeds this number, so borrowers in high-cost areas can get a high balance conforming loans of up to $937,00, depending on the limit in their individual county.