The Right Loan For Your Needs
The right conventional loan is based on a few key factors, including age, family size and your current financial situation.
So, which one is right for you?
Since there are so many different loan choices out there, it may be difficult to understand which loan will be best for you and your lifestyle. In order to make the best financial decision, it’s best to consider the choices available for you, while weighing the pros and cons of each option.
- 30-Year Fixed Loan
- Keeps interests and payments the same for the entire loan duration
- After 30 years your loan will be paid off
- This loan is more expensive than an adjustable rate option, but it provides payment stability
- Best option for those who are planning to live in their home for more than 10 years
- 15-Year Fixed Loan
- Interest and payments will be kept the same through the loan duration
- Your payments will be finished after 15 years, allowing you to pay off your loan in a shorter time frame
- However, it will have a higher monthly payment, compared to the 30-year option
- It will allow you to build equity more quickly, but the high payments will limit homes you can afford
- Adjustable Rate Mortgage
- A great option for those who are interested in selling their homes in a certain time frame
- This mortgage adjusts your interest rate based on current market trends
- This loan offers a lower initial rate (compared with the 30 or 15 year fixed loan)
- Keep in mind that you may pay more or less in interest at the end of your loan period, which is based on the adjustable interest rate.
- VA Loans
- Offers long-term financing to veterans
- If you quality for this loan, you can enjoy benefits such as: no down payment, no pre-payment penalty, no private monthly mortgage insurance
- FHA Loans
- Designed for low or moderate income borrowers
- Allows lower credit scores and a minimum 3.5% down payment
- This loan program offers flexibility
- Allows families to qualify for otherwise unattainable loans
- USDA Loan
- Used to be an option just for farm owners
- Now, it’s great for low to moderate income families who live in the country outside of a major metropolitan area
If you’re interested in discussing your mortgage options today, visit HomePoint RI to make a consultation.