Which Mortgage is Right for You?
There are many factors to consider when purchasing your new home. One of the most important factors is the different types of mortgages available to you. Read below to discover which mortgage is right for you and use our mortgage calculator to estimate your interest rate and monthly mortgage payment on the home you’re considering purchasing.
- Veterans Affairs (VA) loan – This government loan is available to eligible military service men and women who and requires little to no down payment or no private mortgage insurance (PMI) insurance. French Brothers is proud to serve those who have selflessly served our great nation. We understand the ins and outs of VA loans, base relocations and deployments. If you are a member of the military community and looking at Roswell NM homes give us a call at (575)-622-4188 to learn about our Uncle Sam Military Program.
- Fixed-rate mortgage – This type of mortgage means your interest rate and monthly payment is fixed to a set rate for the entire length of the mortgage. Your rate will not be affected by the change in the market. A fixed-rate mortgage is one of the most common loans for homebuyers who want to know exactly what they’re paying each month. The term of a fixed-rate mortgage is usually 15 or 30 years
- Adjustable-rate mortgage (ARM) – Interest rates for an ARM loan is initially lower than that of a fixed-rate mortgage for a specific time period. This is usually between five, seven or ten years. But once that time period is over your rate and monthly payment will change depending on the market. So if interest rates rise your monthly payment will rise too or if they lower so will your monthly payment.
- Bridge loan – This short-term loan is ideal for those looking to purchase another home but have not sold their old home yet. With a bridge loan, your mortgage lender will combine your new and old mortgage. After you have sold your previous home and have finishing paying off that loan you will refinance your new home. A bridge loan, often referred to as a gap, repeat financing, or swing, or repeat financing loan, is ideals to homebuyer’s with excellent credit, a great credit score, and a low debt-to-income ratio.
- Federal Housing Administration (FHA) loan – This type of loan is very popular amongst first time homebuyers. A FHA loan requires a little as a 3.5 percent down payment compared to traditional loans that require a 20 percent down payment of the total cost of your home. Terms of this loan range from a fixed term of 10, 15, 20, 25, or 30 years. Mortgage insurance is also required for a FHA loan.
Most buyers find that the closing process goes smoother and they receive better loan options from a builders preferred lenders. French Brothers, a premier home builder of Roswell NM homes, has cultivated relationships with mortgage lenders in Roswell. Ask a French Brothers New Home Sales Consultant for referrals to our preferred lenders who can discuss the many financing options available to you.Tags: new homes for sale roswell nm, new homes roswell nm