Mortgages are one of the most important financial tools available to home buyers. They allow you to purchase a home with a fixed interest rate, over a specific period of time which could be anywhere from 15 years or up to 30 years. Whether you are looking to purchase a home for the first time or you have purchased a home in the past; it is important to know your options when it comes to home financing!

Mortgages 

A mortgage is a loan that you take out to buy your home. Not only do mortgages allow you to own your home, but they can also provide financial security and help build wealth.

In order for you to purchase a house with a mortgage, you must first get approved by the lender for this financing option. This involves submitting an application with detailed information about your income, credit history, and assets. Your mortgage will require payments each month until it's paid off in full within 30 years or less depending on what type of interest rate was negotiated between the buyer/borrower and lender at closing time. There are various types of mortgages available that offer different rates based on several factors such as income level, down payment amount, and length of the loan term.

FHA

FHA loans are government-backed mortgages that offer lower interest rates than traditional loans. They were designed to help low-income borrowers get into homes they wouldn't otherwise be able to afford.

Unlike conventional loans, with an FHA loan, you often won't have to put down as much money as a down at closing. Down payments can be as low as 3.5%. While minimum credit scores do exist, they're generally lower than what's required by other types of home financing.

USDA

The USDA home loan program is for first-time homebuyers, rural homebuyers, and homeowners who need a little extra help saving for a down payment. USDA loans are also available to families who want to buy homes in rural areas or areas where there is not a lot of development happening.

If you live in an area that does not have many homes nearby, then you may find it difficult to qualify for a mortgage loan because lenders will worry that they won't be able to sell your house if you decide that it's time to sell again or refinance your mortgage. However, with the USDA Loan Program, this doesn't matter because these loans are backed by the government instead of private investors like other types of conventional mortgages are backed by private investors (such as banks).

VA

Veterans, active duty personnel and their spouses can take advantage of the VA Home Loan program. The VA provides a no-down payment option for those who qualify. In addition to this benefit, the VA offers:

• Lower interest rates than conventional loans

• A 100% financing option for first time home buyers

• Veterans' mortgage insurance is not required if you are purchasing a home with less than 20% down payment or refinancing an existing loan with less than 20% equity in your home

Conventional

Conventional loans are not insured or guaranteed by the government, but they are backed by the full faith and credit of the U.S. banking system. They're also called "non-government-backed" loans, because they're offered by banks and other lenders, who must adhere to strict regulations set out by various financial institutions around the world.

Interest Rates

Before you can figure out how much money you will be paying in interest, you need to know the interest rate. The interest rate is the cost of borrowing money, or what lenders charge borrowers for borrowing their capital. It's expressed as a percentage and is calculated by dividing the amount of money borrowed by the total amount paid back over time. Rates are usually higher on home loans than auto loans because homes are more expensive items than cars (and therefore harder to afford). Many buyers are nervous about rising interest rates in our market today. It is important to remember you can always refinance; Marry the house, date the rate.

Refinancing

Refinancing is a way to get a new mortgage with better rates and terms. There are many reasons to refinance your mortgage, but one of the most popular is because you want to pay off your debt faster. Refinancing allows you to take advantage of lower interest rates, which can help you save money on your monthly payments over time.

So how do you start the process? First, you’ll need to have at least 20% equity in your home (this means that if it were sold today, there would be enough money left over after paying off any mortgages). Then find out what programs are available in your area by checking with lenders. Finally, decide which type of program works best for your situation before moving forward with refinancing!

If you have any questions about mortgages, please feel free to contact me. I can help you find the right loan for your needs.