Castle Rock Rich
Castle Rock Rich
Castle RockCO 80109
 (720) 744-2670

What Are the Various Types of Mortgages Offered??

What Are the Various Types of Mortgages Offered??

When it comes to financing a home, there are a number of different solutions. Most people don't have enough cash to pay for the entire cost of their new home up front, so some sort of home mortgage loan must be secured. Let's delve into the many different types of mortgages available for home-seekers.

FHA Loans

A first-time home buyer who is unable to pay 20 percent of the home's purchase price at the time of negotiation should consider a Federal Housing Administration loan. The FHA was formed back in 1934 as a means of helping low-income workers find financing for a home. The FHA insures the loan, allowing for a decreased risk on behalf of the lender. As a result, home buyers can pay as little as 4 percent as a down payment.

Fixed-Rate Mortgages (FRM)

The most popular style of mortgage loans in the United States is the fixed-rate mortgage. It is called “fixed-rate” due to its fixed interest rate, meaning the interest rate remains the same for the life of the loan. The fixed rate allows you to map out your financial plans without any doubts. The only downside is that a fixed-rate loan can be more costly than adjustable rate mortgage (ARM) loans.

Adjustable Rate Mortgages (ARM)

If you are on the prowl for a home loan that will adjust right along with the market, consider an adjustable rate mortgage. If the rate goes down, you will pay less. Alternatively, if it goes up, you will be required to pay more. The benefit of this type of loan is that it typically has lower beginning payments compared to fixed-rate loans.

VA Loan - The VA Loan program helps veterans, active military members and others get the financing they need.

VA Loan

If you or your spouse is a veteran of the armed services, you will likely qualify for a Veteran Affairs loan. Run by the United States Department of Veteran Affairs, the VA loan program helps veterans, active military members and others get the home financing they need. Even widows and widowers of spouses who served are often eligible for a VA loan. Such loans do not require down payments and have limited fees/closing costs.

USDA/RHS

The United States Department of Agriculture provides a loan program for rural residents who satisfy certain income requirements. Rural Housing Services manages the program in an effort to assist rural residents with a low or moderate income obtain housing.

Realty One Group

If you are in the market for a home, Realty One Group should be your first point of contact. Let us help you find the perfect home and sell your current home in a timely manner. Reach out to a Realty One Group real estate agent today for more information about finding the home loan and property that is right or you.

We're also excited to announce that we will be conducting a drawing for a cruise! All you have to do is buy, sell or refer a friend to us and you will be entered. The total value of this giveaway is $500, and the drawing will be conducted on New Year's Eve through randomizer.org.