Mortgage options for home loans: a quick comparison
Whether you are ready to purchase, or refinance, the Loan Advisors at Guarantee Mortgage will help you choose the best mortgage that match your financial circumstances. You can read more about general home loan options here.
- 30-year fixed rate mortgage: A true fixed-rate mortgage for 30 years with a true fixed payment and fixed interest rate.
- 15-year fixed rate mortgage: Pay down your home loan faster and save thousands of dollars you would have otherwise paid on a 30-year loan.
- Adjustable rate mortgage: ARM loans generally begin with an interest rate 2-3 percent below a comparable fixed-rate mortgage. The interest rate is fixed for an initial period (for example, for 5, 7, or 10 years), and then adjusts at specified intervals depending on changing market conditions within certain adjustment caps.
- Federal Housing Association (FHA) loan: With low down payments, flexible loan options, and stable rates, FHA loans are popular among new homebuyers and first-time mortgage holders.
- Veterans Administration (VA) loan: Veterans and members of the U.S. military often rely on VA loans for their home mortgages which can include low down payments and less-stringent credit requirements.
- Jumbo (non-conforming) loan: If the amount of your mortgage will exceed the conventional loan ceiling set by Fannie Mae and Freddie Mac–$417,000 for most areas in the United States—then you’ll need what’s called a jumbo loan. Jumbo loans are typically for loan amounts exceeding the $417,000 ceiling. They have different underwriting guidelines and pricing.
- Interest-only loan: Want the lowest possible payment at the start of your loan, with higher payments kicking in later? Then you might want to consider the interest-only mortgage, which contains a preset interest-payment-only period, and then adjusts to include both principal and interest. These loans are not for everyone, but offer many advantages for the right clients and situations.
Call us at 866-612-5050, or email us to arrange a free consultation today. An experienced Guarantee Loan Advisor will talk to you about your refinance options, and tell you what your new monthly payment might look like based on going rates.
We’ll do the work—you’ll save the money!