A traditional mortgage payment is comprised of both principal and interest. With an interest-only mortgage, your payment is lower because you’re not required to pay on the principal portion of the loan. An interest-only loan is best suited for people with a high net-worth, those with a potential for increasing income, homeowners who plan to move in three to seven years, and real estate investors.
Whether you’re relocating for work or simply buying a new home for yourself, our loan agents are ready to help ease the financial portion of your move. We offer all the guidance and support you will need for a fast, easy and inexpensive closing, including specialized low interest rates, discounted fees, flexible underwriting and reduced documentation. We’ll give you a wide range of products to choose from – including extended rate lock and float down options – and help you select the program that’s right for you.
Conventional loans originated in the 1930s after the Depression and are the benchmark of all other loan types. These loans have several traits:
This type of loan is government-backed and available only to veterans. Some of the features are:
A VA loan has an upfront requirement of a funding fee (FF). This funding fee is a one-time charge which can be rolled into the mortgage amount.
A mortgage with a loan amount exceeding the conforming loan limits imposed by Fannie Mae and Freddie Mac, the two government-sponsored enterprises that buy mortgages from lenders. The limit is $417,000 in most parts of the U.S. but can increase to $625,000 in the highest-cost areas.
An FHA insured loan is a Federal Housing Administration mortgage insurance backed mortgage loan which is provided by a FHA- approved lender. FHA insured loans are a type of federal assistance and have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford.