Charlotte Mortgage Lender - What Type of Mortgage is Right For You Part 1

Charlotte Mortgage Lender - What Type of Mortgage is Right For You Part 1

Hi, I’m Brian Maguire and you’re watching
East Coast Mortgage TV. Today in Part One of this two part video series
I’m going to give you an overview of the five mortgage loan categories! There are many types of mortgage programs
available. The right type of loan for you depends upon
several factors including: * Your current financial picture. * How or if you expect your finances to change. * How long you intend to keep your house. * How comfortable you are with the possibility
your mortgage payment may change in the future.  When considering loan programs, the first
decision is usually if you prefer a fixed rate mortgage or adjustable rate mortgage.

For example, a 15-year fixed rate mortgage
can save you thousands of dollars in interest payments over the life of the loan, but your
monthly payments will be higher. An adjustable rate mortgage may get you started
with a lower monthly payment than a fixed rate mortgage, but your payments could increase
when the interest rate changes. There are 5 major categories of mortgage loans
which include Conventional/Conforming which require good
to excellent credit, have a 417 thousand dollar loan amount limit and No Mortgage Insurance
if there is at least a 20% down payment. Jumbo Loans are another type which require
Good to Excellent Credit, loan amount over 417 thousand dollars and higher down payments
and Equity Required.

Brian Maguire

FHA loans Allow for lower credit scores, Lower
down payments and Equity requirements and have a higher cash out refinance option. This cash out refinance option is a refinance
transaction in which the new loan amount exceeds the total of the principal balance of the
existing first mortgage and any secondary mortgages or liens, together with closing
costs and points for the new loan. This excess is usually given to the borrower
in cash and can often be used for debt consolidation, home improvement, or any other purpose. The borrower effectively borrows against the
home’s available equity. VA Loans are available to qualified Veterans. No Down Payment is required and can be 100%
financing. These loans also have the highest cash out
available on refinances. USDA loans are given for Rural Properties
and No Down Payment is required So there we have it, a general overview of
the different types of loan programs. Be sure to watch Part two of this video series
that provides detailed information about many different types of mortgage loans.

Thanks for joining me and make it a great

As found on YouTube

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