Today's blog is all about mortgages. They are something everybody has to deal with at some point when buying a new home. Most mortgages fall into two categories: fixed-rate and interest-only.
Interest only mortgages are mortgages where you only pay interest. Whatever balance you start with, you will still owe the same amount at the end. The advantage is your payments are lower because you are just paying interest.
When it comes to fixed-rate mortgages, there are a few options to choose from. One of the most popular in our marketplace is FHA. FHA allows you to buy a home with only putting 3.5% down on any loan amount up to $271,000. The advantage of this one is a small down payment, but you will have to pay PMI. PMI is Private Mortgage Insurance and this is an amount you will have to pay that doesn't go towards your principle balance. It costs a little extra, but that's the price you pay for getting such a low down payment.
Another option is a VA loan, a loan for veterans that can cover up to $417,000. You will have a few additional closing costs, but if you are a veteran, this is a great option.
Balloon mortgages are something you need to be careful with. Anything with the word balloon in it signifies that there will be a set amount you have to pay at some point in the future, so you will need to have a game plan for that.
Thanks for taking the time to check out our blog. If you have any questions about mortgages or anything else real estate related, feel free to give us a call or send us an email. We'd be glad to help.
