Hi everyone! [JOE AGENT] here with Berkshire Hathaway HomeServices PenFed Realty Texas. I wanted to take a moment & expand on something I find a lot of buyers
contemplating when getting ready to find that next home, mortgages. There are a
number of different mortgage options so I wanted to take a second to elaborate on a
couple of the more popular ones.
First, is the Conventional loan. These loans are offered by private lenders & will have
different loan types available such as Fixed Rate & Jumbo Mortgages. A fixed rate loan
or mortgage is one in which your interest rate does not change for a period of time
during the life of the loan. This allows the borrower to predict loan payments in advance
& know how long it will take to pay off the loan amount. A second option offered by
many Lenders is a Jumbo Mortgage. In this case, the borrower is allowed to take on
more debt that normal limits allow, generally for a higher priced property, but requires a
larger down payment as the risk to the lender is greater.
The second popular loan type is the FHA Loan, which, is a loan guaranteed by the US
Federal Housing Administration. This type makes it easier for families & individuals with
lower incomes to be able to purchase homes. The requirement for this type of loan is
that the borrower must pay a premium of 1.75% to the FHA up front, as well as a monthly
premium which makes for these loans being more expensive than a Conventional Loan
option. However, if the borrower can not qualify for a Conventional Loan or other option,
an FHA Loan is a great opportunity to purchase a house.
Although these are the 2 most common loan types in Texas, there are also more such
as; VA loans, USDA loans, First Time Homebuyer mortgages & more. If you want more
detailed information on loan types available & what could be the best option for your
specific needs, give me a call & let’s chat!
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