Mortgage Loans and Their Differences
June is National Homeownership Month. When it comes to setting a solid foundation for successful homeownership, finding the right mortgage is just as important as finding the right house. Buying a home is a big commitment, and likely the biggest and most important purchase you’ll ever make. It’s understandable to feel unsure about which mortgage loan is best suited to your needs, especially if this is your first time buying a home. That’s why we’re here to help! As your trusted financial partner, we are committed to helping you through every step of the home buying process. That commitment starts with helping you choose the mortgage option that best fits your needs. Here are the different types of mortgage loans we offer for you to choose from.
We offer conventional mortgage types:
Fixed Rate Mortgage Loans
The interest rate on a fixed rate mortgage is set when you take out the loan, and remains the same over the life of the loan. Since the interest rate is fixed, this means your monthly payment amount will also stay the same for the entire term of your loan. The interest rate is usually somewhat higher than other mortgage loan types, to account for rates rising in the future. However, having a consistent interest rate and monthly payment is appealing to many buyers. That stability makes it easier for to work your monthly payment amounts into your budget. Fixed rate mortgages are ideal for home buyers who plan to stay in the home for many years or prefer the consistency of a set monthly payment.
Adjustable Rate Mortgage Loans
An adjustable rate mortgage (also known as an ARM, or a variable rate mortgage) is designed so the interest rate can change over the life of the loan. Your monthly payment will rise and fall along with the rise and fall of your interest rate. Adjustable rate mortgages usually have a lower starting rate. However, the rate can fluctuate unpredictably, thus making it harder to budget for. Adjustable rate mortgages are ideal for homeowners who plan on moving within a few years or expect significant income growth over the next few years.
We also offer a variety of specialized loan types to fit your unique needs:
First Time Home Buyer Mortgage Loans
Affordable First, our First Time Homebuyer’s Program, is specifically designed with the best benefits in mind for first time buyers. You can finance up to 97% of the home’s appraised value or purchase price, whichever is less. All Robins Financial Affordable First Mortgages have reduced closings costs, with no appraisal fee, credit report fee, or underwriting fees.
VA Mortgage Loans
Serving those who serve, with better rates and terms. We are committed to helping our veterans, service members, and surviving spouses. The Veterans Administrations (VA) Program offers home loans to eligible members to build, buy, improve, or refinance a home. VA Loans often offer better benefits than conventional loans, including no down payment.
FHA Mortgage Loans
The Federal Housing Administration (FHA) Program is designed to promote home ownership by helping you afford your first home. FHA Loans are ideal for first-time buyers, or buyers with less-than-perfect credit. This type of mortgage loan can help you overcome the biggest stumbling block to home ownership with lower down payments and more lenient credit qualifications.
USDA Mortgage Loans
The United States Department of Agriculture (USDA) Mortgage Program is one of the government’s least-known mortgage assistance programs. Buyers don’t need to be affiliated with agriculture industries to qualify. USDA Loans are targeted to eligible rural and sometimes suburban home buyers, and feature no down payment. Qualification requirements vary by location, household size, and income. For those who qualify, USDA Mortgage Loans provide up to 100% financing.
If you’d rather build your dream home than try to find it and buy it, a construction loan is your best bet. Construction loans are perfect for buyers planning to build a new home. Our construction loans feature up to 90% financing of the appraised value.
Your dream home starts with the dream location. If you’ve found the perfect piece of land, but you’re not quite ready to break ground yet, a land loan allows you to buy now and build later. We offer an easy and affordable way for you to purchase the ideal lot or land for the construction of your new home. And when the time comes to build, we’ll be right there to help you every step of the way.
If you’re ready to become a home owner, let our mortgage team help you get the right loan to meet your needs. Visit our Mortgage Loan Center to learn more about the mortgage process, use our Home Buying Calculators to get a picture of what your home loan will look like, and check out our Buying a Home video series on YouTube for more information about home buying. Apply for a mortgage loan online or set up an appointment to speak with one of our Mortgage Loan Officers.