Much like Goldilocks, hopeful homeowners have to test out a few options to find a mortgage program that’s just right for them and their individual needs. Wyndham Capital Mortgage offers several home buying programs so that our customers don’t have to compromise or settle. Here, we’d like to take the opportunity to inform you about five programs in particular that you might find to be the perfect fit.
1. 30-Year Fixed Mortgage
30-year fixed mortgages are among the most common. What’s great about them is that you can lock in your interest rate for 30 years, which means your monthly payments won’t change, and you don’t have to worry about the fickle whims of inflation. Even better is the fact that you receive a tax deduction for the interest you do pay. This particular program is well suited for homeowners who plan on keeping their homes for more than seven years.
2. 15-Year Fixed Mortgage
A 15-year mortgage shares most of the same features as a 30-year mortgage, except the terms are obviously shorter. One of the biggest advantages of a shorter loan is that you don’t borrow as much money as you would with a 30-year mortgage. Something else to consider is the fact that your interest rate is lower. As for the downsides, your monthly payments are higher, which means you have less money to devote to savings accounts, college tuition, retirement and the like.
3. Adjustable Rate Mortgage
Like the name implies, the interest rate for an adjustable mortgage changes over time. Bear in mind that there is an initial period where your interest rate is fixed before it starts to fluctuate. A benefit of this program is that your initial rate is lower than it would be if you were to opt for a fixed mortgage. There’s also the possibility that your rate may take a dive after the initial fixed period. On the other hand, it’s just as likely that your interest rate may increase after the fixed period, which means you have to prepare your finances for both eventualities. This particular option is best left to those who don’t plan on staying in their homes for very long and don’t mind taking a risk with interest rates.
4. FHA Mortgage
Don’t have at least 20 percent for a down payment on your home? FHA loans have lower down-payment requirements in addition to less strict lending standards. This loan program doesn’t require borrowers to have the best of credit, and you may have your closing costs covered as well. For all its perks, bear in mind that you’re required to have two-part mortgage insurance; an upfront premium that has to be paid when you get the loan, and a yearly premium that’s divided over monthly payments. Finally, FHA loans give you the option of borrowing money for any repairs your home might need.
5. VA Mortgage
Active military members and veterans have access to a VA mortgage which is a specialty program offering several benefits. A few of the highlights of the program include:
- There’s no minimum credit score requirement.
- Mortgage insurance isn’t necessary.
- Qualifying applicants aren’t required to have a down payment.
- VA loans are a bit easier to qualify than the other mortgage programs mentioned on this list.
There are eligibility requirements for this program, such as active duty members have to have at least six months of service before they qualify for the program. Members of the National Guard and reservists have to wait six years before they are able to apply, but that’s shortened to 181 days if they’re called for active duty before that six years is over.
The best way to make the right decision about your mortgage is to know as much as possible about all your program options.
Find out more about these five programs and additional options by talking with a mortgage expert. Click below to get matched with the best Loan Officer for you!