30 Year Fixed Rate Mortgage

A 30 year fixed rate mortgage is a very popular home loan option. It’s long term and fixed rate makes it attractive to many home owners. Homeowners with a 30 year fixed rate mortgage will have payments that stay the same, allowing them to know exactly how to budget their finances every month.

Is a 30 Year Fixed Rate Mortgage Right For You?

To decide if a 30 year fixed mortgage is right for you, ask yourself these three things:

1. How Long Are You Planning On Staying In Your Home?
   If you’re considering getting a 30 year fixed rate mortgage, you should also be planning on staying in your home for more than 5-7 years.
2. Do You Prefer Your Monthly Mortgage Payment To Stay The Same?
   30 year fixed rate mortgages are famous for having an interest rate that doesn’t change for the entire life of the loan, keeping your mortgage payments the same month-after-month, for 360 months.
3. Do You Want a Low Mortgage Payment?
   Due to the long nature of this loan, a 30 year fixed rate mortgage makes your monthly mortgage payments more affordable in comparison to shorter length fixed rate mortgages (like a 15 year fixed rate mortgage). You end up paying more interest over the 30 years, but the principal repayment is spread over that same time period, which gives you more manageable payment amounts.

Features

• Your interest rate and monthly principal and interest (P&I) payments remain the same for the life of your loan.
• A 30 year loan term offers a lower month payment than a short loan term, such as a 15 year loan.

Benefits

• A 30 year fixed rate mortgage gives peace of mind to homebuyers who don’t want to worry about fluctuating mortgage payments.
• Predictable monthly P&I payments allow you to budget more easily.
• Protection from rising interest rates for the life of the loan, no matter how high interest rates go.
• May be a good choice if you plan to stay in your home for a long time.

15 Year Fixed Rate Mortgage

A 15 year fixed rate mortgage is in many ways similar to a 30 year-fixed rate mortgage. Your rate stays the same throughout the life of your home loan, giving you security and predictability with your monthly mortgage payments.

The main difference is shorter loan term. With a 15 year-fixed rate home loan, you’ll be able to pay off your mortgage in a shorter amount of time. In addition, with a 15 year fixed rate mortgage, you’ll be able to take advantage of a lower rate than what’s available with a 30 year fixed home loan. A shorter loan term plus lower mortgage rates means paying less interest on your loan – saving you more money!

One point to note: a 15 year fixed rate mortgage will have a higher monthly payment than a 30 year, so you’ll need to factor that into your budget.

Is a 15 Year Fixed Rate Mortgage Right For You?

A 15 year fixed rate mortgage can be a great home loan for many people; specifically, it is very popular for two different types of homebuyers.

First, young homebuyers with sufficient income find 15 year fixed rate mortgages popular as they enable these homeowners to pay off their home quickly before their children begin college.

Second, homebuyers with an already established career and higher income find 15 year-fixed rate home loans attractive as they can pay off their mortgage faster before they retire.

Features

• Your interest rate and monthly principal and interest (P&I) payments remain the same for the life of your loan.
• A 15 year fixed rate mortgage will have a higher monthly payment than a 30 year, so you’ll need to factor that into your budget.

Benefits

• A 15 year fixed rate mortgage gives peace of mind to homebuyers who don’t want to worry about fluctuating mortgage payments.
• Predictable monthly P&I payments allow you to budget more easily.
• Protection from rising interest rates for the life of the loan, no matter how high interest rates go.
• Short loan term allows you to pay off the loan sooner, thus saving you on the total interest paid.

Adjustable Rate Mortgage

An Adjustable Rate Mortgage, or ARM, is a loan option whose interest rate changes after a fixed number of years (typically 5 or 7 years). After this fixed period of time, the rate will likely adjust, either increasing or decreasing your monthly payments.

An ARM is a common alternative to a fixed rate mortgage, typically offering lower initial interest rates and payments than you’d be able to obtain with a fixed rate mortgage.

Is an ARM Mortgage Right For You?

Are you thinking about moving or upgrading your home in a few years? Adjustable rate mortgages are a cheaper way to buy a home when you don’t plan on staying in it past 5-7 years. This is due to their lower initial interest rates and lower monthly payments.

If you want the lowest rate currently available, an ARM can provide you with it. ARMs transfer part of the usual “interest rate risk” carried by all home loans, from the lender to the borrower since the borrower is taking advantage of lower initial payments by risking the possibility that the mortgage interest rate could increase after the initial term.

Features

• Your interest rate and monthly principal and interest (P&I) payments remain the same for an initial period of 5, 7, or 10 years, then adjust annually. Your monthly principal and interest payments may increase when the interest rate adjusts.
• Your monthly principal and interest payments may change every year after the initial fixed period is over.
• Adjustable-rate mortgages carry lifetime and periodic rate caps, limiting the total rate change your loan can experience each period and over the life of your loan.
• Loans available in a variety of terms.

Benefits

• Typically ARMs have a lower initial interest rate and payment than on a fixed-rate mortgage.
• The interest rate cap limits the maximum amount your P&I payment may increase at each interest rate adjustment and over the life of the loan.
• May provide flexibility if you expect future income growth or if you plan to move or refinance within a few years.

Jumbo Mortgage

Home loans fall into two categories based on their loan amount: conforming and jumbo loans. If you need a home loan that’s over the conforming limit, you will probably need to get a Jumbo mortgage.

Jumbo loans offer the same flexibility as conforming loans, however the only difference is that they are not eligible for purchase by Fannie Mae or Freddie Mac and must be sold in the secondary market. This means that the rates for Jumbo loans will be slightly higher than home loans with similar terms that are conforming loans. Sometimes Jumbo loans are referred to as non-conforming loans.

Features

• A “non-conforming” loan allows for mortgage amounts above the maximum conforming loan limits.
• Available in a variety of fixed-rate and adjustable-rate loan options.

Benefits

• Obtain financing for loan amounts higher than the Fannie Mae and Freddie Mac conforming limits.
• Choose from a variety of loan options.

FHA Mortgage

Insured by the Federal Housing Administration (FHA), an FHA loan can be one of the easier home loans for which to qualify.

FHA home loans can benefit almost all home buyers and refinancers – first-time home buyers, military families, lower-income families and homeowners who don’t want to tie up a lot of cash in their homes.

Benefits

• Home equity/down payment as low as 3.5% (requires mortgage insurance)
  
• An allowance for less-than-perfect credit
  
• May be easier to to qualify than a Conventional loan.

An FHA loan may be right for you if you are refinancing and do not have sufficient equity in your home for a conventional loan and/or have less-than-perfect credit.

FHA Streamline Refinance

Insured by the Federal Housing Administration (FHA), an FHA loan can be one of the easier home loans for which to qualify. An FHA loan may be right for you if you are refinancing and do not have sufficient equity in your home for a conventional loan and/or have less-than-perfect credit.

• Are you currently in an FHA loan?
  
• Do you want to save money with a lower rate and payment on your FHA loan – even if you owe more than your home is worth?
  
• Would you like a mortgage with no appraisal required, lower credit requirements, and limited documentation to help you qualify?

If you answered “yes” to these questions, you’re in luck. Mortgage rates are low, and an FHA Streamline might be right for you! You can qualify for an FHA Streamline Refinance even with less-than-perfect credit, so complete our contact form below to see if you qualify! 

What is an FHA Streamline Refinance?

• The FHA Streamline is a refinance program from the Federal Housing Administration that could get you a lower rate on your FHA mortgage without an extensive qualification process. Simply put, the typical refinance process is streamlined! The FHA Streamline loan is also known as an FHA IRRRL (Interest Rate Reduction Refinance Loan).
  
• In order to qualify, you must currently be in an FHA loan.

How the FHA Streamline Refinance Works

• FHA Streamline is a refinance program for homeowners currently in an FHA loan.
  
• The FHA Streamline is offered as a 5-year adjustable rate mortgage (ARM), or a 15-, 20-, 25-, or 30-year fixed-rate loan.
  
• No appraisal required.
  
• Minimal credit requirements.
  

Is an FHA Streamline Refinance Right for You?

The FHA Streamline could be right for you if you’re in an FHA loan now and you meet one or both of the following criteria:

• Your current mortgage rate is higher than today’s mortgage rates.
  
• You owe more on your mortgage than your home is worth.

Mortgage rates are low and a refinance can help you lower payment and save you money. Complete the form below to get started and find out if you qualify for an FHA Streamline Refinance!

VA Mortgage

VA Loans are available exclusively to veterans, active-duty personnel, reservists, National Guard members and, in some cases, surviving spouses.

VA Loan Refinance Benefits

• The ability to refinance up to 100% of your primary home’s value
  
• Multiple loan terms and types (fixed and adjustable rate)
  
• Streamlined financing with minimal documentation for current VA loan borrowers
  
• An allowance for less-than-perfect credit

A VA loan may be right for you if you qualify and you are refinancing and wish to get more out of your home by refinancing up to 100% of its value.