Priority Mortgage OptionsOne of the most difficult aspects of the finance process is sorting through the multitude of loan products currently available. It is confusing! At Priority Mortgage, we’ve done that for you. We can help you easily eliminate the mortgages that you definitely don’t want and focus on a shorter list of mortgages that will be best for your family. Things to consider are: How much down payment you have, if any?; How long you plan to live in the home?; How much home do you need?; How you will pay for closing costs and other expenses?; How many recreational activities outside the home do you enjoy? Considering all aspects of home ownership is key to being a happy and confident homeowner.
Fixed Rate Loans– The interest rate stays the same throughout the life of the loan, so the principal and interest payments never change. Several types of fixed rate mortgages exist and range from a simple refinance to a purchase with no down payment. Most loans that provide for 100% financing will be 30 year fixed rate loans. Based on where the market has been over the last few years, a fixed rate loan has been the obvious choice for most homeowners. ARM (Adjustable Rate Mortgage) Loans – The interest rate stays the same for a fixed period of time and then can change periodically, so the payments will also change. Depending on what is happening in the market, the rate on an ARM loan may be higher, somewhat lower, or much lower than the rate on a fixed rate loan, so it pays to examine both options carefully. First Time Homebuyer Loans - The term First Time Homebuyer Loan is used throughout the industry to explain any loan that helps someone purchase their first home. There are a variety of loans that meet that description, and they are referred to with different names, depending if they are a Fannie Mae or Freddie Mac loan. FHA and Rural Development loans are also considered first time homebuyer loans, but are not all limited to first time homebuyers. (These are outlined below.) Each loan program has different guidelines that must be met to qualify for loan, typically based on credit, income, and debt. At Priority Mortgage we have access to several different financing options for the first time homebuyer and will gladly help find the right one for your family. Construction to Permanent Loans – A construction loan is for those who wish to build their own home, and is typically a short term loan. After completing construction, long term financing (a permanent loan) will be needed; which is generally a fixed rate loan. There are restrictions on the type of financing available, depending on the loan to value percentage and length of ownership. Working with Bank of Sullivan and Priority Mortgage can assure a smooth transition from construction to permanent financing. Government Backed Loans - A government backed loan is a loan that is backed by the federal or local government in case of default. It protects the lender, and in order to get the backing, the borrower typically pays a guarantee fee or insurance fee. The programs listed below are federal programs, however; we are constantly researching new programs at both the state and federal levels to provide even more options to our customers. USDA Rural Development Loan – This loan is guaranteed by the USDA and is designed for low to moderate income families. There is a fee for the guarantee and it can be added to the loan. This is a 30 year fixed rate loan. No down payment and no PMI is required. There are income restrictions for this program, and vary by county and family size. FHA (Federal Housing Administration) Loan – This loan is an insured Housing and Urban Development (HUD) mortgage. There is a fee or premium for having the loan insured. This loan also requires no down payment but does have monthly MI, and is typically a 30 year fixed rate loan. |
