Top Mortgage Comparisons

Apr 20, 2017 | Financial

Choosing A Mortgage Loan

The most common question we were asked to compare from our latest Facebook survey was: What are a few of the different types of mortgage loans available to home buyers in 2017?

This post we will discuss the different types of mortgage loans available as well as some basic comparison information.

Purchasing A Home

Unlike renting, owning a home allows you to build equity. In addition to being a place to live, your house is an investment. However, home ownership comes with more responsibility than renting.

The next factor you need to consider is your credit score. Your credit score plays a major part in determining what interest rate you receive when getting a mortgage. The higher your credit score, the lower your interest rate will most likely be. Review your credit score with the major credit bureaus (Equifax, TransUnion and Experian). Verify your credit history is accurately reporting credit card and loan payments or other debt.

The following are the mortgage loan type comparisons.

Fixed Mortgage

A fixed rate mortgage is the most ordinary and uncomplicated mortgage available to homeowners today. As the name suggests, the interest rate on fixed mortgages do not change during the entire duration of the loan, which typically lasts for 30 years.

fixed mortgage rates
Another key characteristic of the fixed-rate mortgage is that monthly mortgage payments remain constant throughout the life of the loan, to the very last month when the loan is finally paid off similar to an auto loan.

In other words, there aren’t too many surprises with a fixed-rate loan, allowing the homeowner to sleep at night.

VA Mortgage

The U.S. Department of Veterans Affairs (VA) offers a loan program to military service members and their families.

VA Mortgage rates
Similar to the FHA program, these types of mortgages are guaranteed by the federal government. This means the VA will reimburse the lender for any losses that may result from borrower default.

The primary advantage of this program (and it’s a big one) is that borrowers can receive 100% financing for the purchase of a home. That means no down payment whatsoever.

Reverse Mortgage

Reverse Mortgage Program, also known as a HECM mortgage loans which are available in all fifty states.

reverse mortgage rates
The HECM loan allows seniors who are at least 62 years of age refinance into a reverse mortgage. But, this does not necessarily mean that it is the best loan type for you.

Reverse mortgages are usually best for borrowers who plan to use their reverse mortgage funds all at once, such as to pay off an existing mortgage or other debt.

Final Tip: Get Pre-Qualified

Did you know you can apply for a mortgage before you even have a house picked out?

In fact, it’s a good idea to get your mortgage lined up so that sellers know you’re a serious buyer.

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Choosing A Mortgage Loan

What are a few of the different types of mortgage loans available to home buyers in 2017? Was the most common question we were asked to compare from our last Facebook servery. This page offers basic comparison information about the types of mortgage loans available.

Purchasing A Home

Unlike renting, owning a home allows you to build equity. In addition to being a place to live, your house is an investment. However, home ownership comes with more responsibility than renting.

The next factor you need to consider is your credit score. Your credit score plays a major part in determining what interest rate you receive when getting a mortgage. The higher your credit score, the lower your interest rate will most likely be. Review your credit score with the major credit bureaus (Equifax, TransUnion and Experian). Verify your credit history is accurately reporting credit card and loan payments or other debt.

The following are the mortgage loan type comparisons.

Fixed Mortgage

A fixed rate mortgage is the most ordinary and uncomplicated mortgage available to homeowners today. As the name suggests, the interest rate on fixed mortgages do not change during the entire duration of the loan, which typically lasts for 30 years.

fixed mortgage rates
Another key characteristic of the fixed-rate mortgage is that monthly mortgage payments remain constant throughout the life of the loan, to the very last month when the loan is finally paid off similar to an auto loan.

In other words, there aren’t too many surprises with a fixed-rate loan, allowing the homeowner to sleep at night.

VA Mortgage

The U.S. Department of Veterans Affairs (VA) offers a loan program to military service members and their families.

VA Mortgage rates
Similar to the FHA program, these types of mortgages are guaranteed by the federal government. This means the VA will reimburse the lender for any losses that may result from borrower default.

The primary advantage of this program (and it’s a big one) is that borrowers can receive 100% financing for the purchase of a home. That means no down payment whatsoever.

Reverse Mortgage

Reverse Mortgage Program, also known as a HECM mortgage loans which are available in all fifty states.

reverse mortgage rates
The HECM loan allows seniors who are at least 62 years of age refinance into a reverse mortgage. But, this does not necessarily mean that it is the best loan type for you.

Reverse mortgages are usually best for borrowers who plan to use their reverse mortgage funds all at once, such as to pay off an existing mortgage or other debt.

Final Tip: Get Pre-Qualified

Did you know you can apply for a mortgage before you even have a house picked out?

In fact, it’s a good idea to get your mortgage lined up so that sellers know you’re a serious buyer.

We Compare the Best to the Rest

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