Speak to an Expert

Mortgage 101

A mortgage is a loan issued to a borrower who is either buying or refinancing a real estate property.

Its a legal agreement between a borrower and lender, that gives the later the ability to take ownership of the property if the borrower doesn’t make payments according to their terms. When borrower has made all payments, he or she owns the property “free and clear.”

The home buyers pays principal and interest payments on a monthly basis for a specific time period. The most common term for a fixed-rate mortgage is 30 years. That said, 20, 15, and 10 years terms are available.

A shorter-term equals higher monthly payment but lower interest costs.

Types of Mortgage Loans

When applying for a loan, you'll first need to choose whether you want a fixed interest rate or an adjustable rate. You'll also decide the the length of the loan.

- Fixed-Rate Mortgage: interest rate doesn’t change, so the monthly principal and interest payment remains the same for the life of the loan.

- Adjustable Rate Mortgage (ARM): the interest rate is fixed for an initial period of time (five, seven, or 10 years) and then converts into a variable rate of interest. The rate changes with the rate index that it’s tied to, so monthly payments may increase or decrease.

After this, you'll also need to choose the type of loan:

- Conventional Loans: loans that are not backed by a government agency, and must adhere to the requirements of Fannie Mae, Freddie Mac, or other investors.

- FHA Loans: insured by the Federal Housing Authority and generally target first-time homebuyers or those who struggle to meet the minimum requirements for a conventional loan.

- VA Loans: guaranteed by the U.S Department of Veterans Affairs for veterans, active-duty service members, and eligible surviving spouses.

Free Referral to a Mortgage Provider

There are many factors affecting mortgage loan’s interest rate such as your credit score, down payment, and the amount of your mortgage loan.

As you can see, understandng mortgage loans and finding the best rates is challenging work. You'll have to dig deep and understand your options.

That's why we are here to help! Let us refer and connect you to a licensed mortgage provider for a free consultation. They'll help you understand how mortgages work, and help you find the lowest rates for your needs

To start, simply call us at 1-888-985-3341.