Are you looking for home financing options? Contact Elite Mortgage Source for residential loans.
Residential mortgage loans are home loans that are designed for residential purposes as opposed to commercial gains. They are available to individuals who wish to buy a home, construct a home to live in or purchase a block of land. You have several different types of residential loans to choose from. This guide discusses five of the most commonly used residential loans on the market.
Fixed-Rate Mortgages
For this mortgage type, the interest rate stays the same throughout the life of the loan. The term for fixed-rate mortgages is 15, 20, or 30 years, and you pay the same mortgage payment each month during this period. While this should allow you to budget your monthly expenses more precisely and stay in control of your finances, you’ll generally end up paying more in interest because the interest rates are higher than those for adjustable-rate mortgages.
Adjustable-Rate Mortgages
Adjustable-rate mortgages feature fluctuating interest rates based on market conditions. Typically, the interest rate will stay the same for a few years before the interest rates begin to vary for the remainder of the term. These are risky types of mortgage loans because you never know what happens on the market. You do have a chance to save a lot of money on interest payments, but if the interest rates shoot up, you may not be able to afford your mortgage payments and default on repayment.
FHA Loans
Backed by the government, the Federal Housing Administration (FHA) loans are designed for borrowers who may not otherwise be able to afford a home. You may qualify for an FHA loan with a credit score of as low as 500, and down payments are as low as 3.5%. You’ll be required to pay two mortgage insurance premiums. The first one is paid upfront, while the other is paid annually.
USDA Loans
Issued by the US Department of Agriculture, USDA loans are mortgages designed for low- to mid-income buyers in rural and suburban areas. These loans are subject to property value and income limit caps and don’t normally require a down payment. You also have grants and home improvement loans available. To qualify, you must meet certain income limits and purchase a home in a USDA-eligible area.
VA Loans
These are flexible, low-interest mortgages offered by the Department of Veteran Affairs to US military service members and veterans. No mortgage insurance or down payment is normally required for these loans. You only need to pay a funding fee upfront.
Contact Elite Mortgage Source Today
Elite Mortgage Source, LLC is a full-service mortgage brokerage company that offers a variety of loan programs, including those discussed above. It has partnered with the leading lenders in the industry to provide mortgage products tailored to your specific needs. Committed to helping you find the right mortgage, Elite Mortgage Source gets you prequalified for a mortgage so you know how much of a mortgage you can qualify for.
For mortgage brokerage services, reach out to Elite Mortgage Source today!
