Great Mortgage Options to Consider

by Ellen Johnson 08/31/2020

Photo by Mastersenaiper via Pixabay

When it comes to financing your home, you have a several mortgage options available. Each type of mortgage offers different advantages, so be sure to do research before applying. Below are some of the most popular types of mortgages borrowers may consider. 

Conventional Loans

A conventional loan is a mortgage not insured by the federal government. In most cases, conventional loans will conform to the standards established by Fannie Mae and Freddie Mac. However, some lenders may offer loans that do not adhere to these standards, which are known as non-conforming loans. In most cases, conventional loans will require a down payment of 20 percent. Otherwise, you will have to pay mortgage insurance. 

FHA Mortgages

FHA mortgages are a popular type of government-backed loan that is designed to give people with lower credit scores and/or lower buying power the ability to purchase a home. If you opt for an FHA mortgage, you may not need to make as large of a down payment, but you will need to pay mortgage insurance. Backed by the Federal Housing Administration, these loans are popular among first-time homebuyers. 

VA Mortgages

VA mortgages are home loans backed by the U.S. Department of Veterans Affairs. These loans are available to current members of the military as well as veterans. If you qualify, VA mortgages are very beneficial, as they offer a lower interest rate and may not require a down payment. VA mortgages don’t require you to pay any mortgage insurance, either. 

Jumbo Mortgages

A jumbo mortgage is a loan that has limits higher than most other mortgages, which allows you to buy a more expensive property. These loans are most popular in areas where home prices are higher. Interest rates on jumbo mortgages are usually comparable to the rates paid on a conventional loan. However, the qualification requirements are much more strict. In most cases, you will need to show proof of significant assets, as well as a high credit score. Some lenders may offer other options, but the mortgages above are the most common. 

Keep in mind that even after you have chosen the type of mortgage you want, you will still have other decisions to make with regard to the type of rate and the length of the term. To make the best decision for your needs, consider working one-on-one with an experienced mortgage agent who can review your situation and help you choose the loan that makes the most sense.

About the Author
Author

Ellen Johnson

 

I am a longtime time resident of Plymouth, I started my love of the area as a summer resident who was lucky enough to spend summers at the beautiful Priscilla Beach. I am a successful business owner who owned the first salon and day spa in Plymouth. I sold that business and started a highly successful women's clothing and accessory store also located in Plymouth.  My love of the area and real estate brought me to a new chapter in my life full time real estate sales.

Leveraging my experience as a business owner known for outstanding client service, high tech marketing and a personal touch that is needed in a real estate transaction I have guided my sellers and buyers through the complicates process of a real estate transaction. I am proud to say my first full year in real estate I received the International Diamond Society designation, awarded to the top 11% of all Coldwell Banker Affiliated Sale Associates. 

I am grateful for my wonderful husband and 3 beautiful children. Also, to live on the South Shore of Massachusetts. I can truly say there is NO PLACE LIKE HOME!