WHEN IT COMES TO MORTGAGES, ONE SIZE DOES NOT FIT ALL.
How do I know what’s best for me?
Numerous options and programs exist with different terms, features and benefits to suit various buyers. Be a well-informed consumer by familiarizing yourself with these common mortgage types:
Conventional/Fixed- Rate Mortgage:
A fixed-rate mortgage features an interest rate that remains constant throughout the term of the loan. Most fixed-rate mortgages come with a term of either 15 or 30 years.*
Adjustable-Rate Mortgage (ARM):
Adjustable-rate mortgages typically start with a lower rate than fixed-rate mortgages, but after a few years the rate can begin to rise and will fluctuate periodically.*
VA (Veterans Af fairs) Loans:
VA loans off er up to 100% financing for military members and their families.
FHA (Federal Housing Administration) Loans:
FHA loans can help buyers receive financing even if they may not otherwise qualify for a mortgage. The FHA insures the lender for the mortgage amount – removing the risk associated with the borrower.
USDA (United States Department of Agriculture) Rural Development Loans:
These loans are available to rural residents who meet certain requirements, including the inability to be approved for traditional financing.
Balloon Loans:
A balloon loan is a mortgage in which a larger-than-normal outstanding balance must be paid at the end of the term.
Selecting the mortgage option that works best for you will depend on a number of factors, including how long you plan to stay in the home, if you’re comfortable not knowing what your future payments might be and more. Work with your loan officer or mortgage broker to discuss your goals and lifestyle in relation to these different financing options. By carefully analyzing the pros and cons of each loan type, you can determine a financing option
that best meets your needs.
*Available at Dominion Energy Credit Union.
