Loan Types to Consider

Dated: March 5 2019

Views: 134

LOAN TYPES TO CONSIDER

Brush up on these mortgage basics to help you determine the loan that will best suit your needs.

Mortgage terms. Mortgages are generally available at 15-, 20-, or 30-year terms. In general, the longer the term, the lower the monthly payment. However, you pay more interest overall if you borrow for a longer term.

Fixed or adjustable interest rates. A fixed rate allows you to lock in a low rate as long as you hold the mortgage and, in general, is usually a good choice if interest rates are low. An adjustable-rate mortgage is designed so that your loan’s interest rate will rise as market interest rates increase. ARMs usually offer a lower rate in the first years of the mortgage. ARMs also usually have a limit as to how much the interest rate can be increased and how frequently they can be raised. These types of mortgages are a good choice when fixed interest rates are high or when you expect your income to grow significantly in the coming years.

Balloon mortgages. These mortgages offer very low interest rates for a short period of time — often three to seven years. Payments usually cover only the interest so the principal owed is not reduced. However, this type of loan may be a good choice if you think you will sell your home in a few years.

Government-backed loans. These loans are sponsored by agencies such as the Federal Housing Administration ( www.fha.gov) or the Department of Veterans Affairs (www.va.gov) and offer special terms, including lower down payments or reduced interest rates to qualified buyers.

Slight variations in interest rates, loan amounts, and terms can significantly affect your monthly payment. For help in determining how much your monthly payment will be for various loan amounts, let us put you in touch with a Mortgage expert.

The data relating to real estate for sale on this site comes in part from the Broker Reciprocity Program of Georgia MLS. Real estate listings held by brokerage firms other than Results Realty Services are marked with the Broker Reciprocity logo and detailed information about them includes the name of the listing brokers. 


Listing broker has attempted to offer accurate data, but buyers are advised to confirm all items. 

Copyright 2019 Georgia MLS. All rights reserved. 

Latest Blog Posts

You Can Still Sell in This Softening Market

           How do you price your home in a softening market? We’re heading into August, so school is starting, which is taking a few people out of our market. The

Read More

What Happened in the Atlanta Market This July?

          The recent news headlines about the changing market have been sensationalized, and everyone seems to have a different perspective on the topic. Before you get

Read More

What Do Rising Rates Mean for Our Market?

          “What’s going on with interest rates?” I receive this question almost every day. In case you haven’t been paying attention, the Federal

Read More

Is Now a Good Time To Buy?

Lower interest rates are not on the horizon so you should buy now.Should you wait to buy in this market? Mortgage rates have risen to a little more than 5% on average, and they did so considerably

Read More