FirstCCU’s Guide to Home Mortgage Loans
FirstCCU’s Guide to Home Mortgage Loans
Finding the right property isn’t the only thing to consider when you’re in the market for a new home. You’ll also want to select a mortgage that makes the most sense for you and your life situation. We recommend taking the time to learn about the different types of mortgages available and weighing the pros and cons of each before making your choice. This may be a daunting task for first-time home buyers, and that’s why FirstCCU is here with information to help you choose the right mortgage!
Fixed-rate mortgage
Fixed-rate mortgage monthly payments don’t change throughout the life of the loan, making it easier to plan a budget, and are a perfect option for homeowners who want predictable, non-fluctuating interest rates.
Adjustable-rate mortgage
This is the opposite of a fixed-rate mortgage. Adjustable-rate mortgages (ARMs) are loans with a variable interest rate that fluctuates during the life of the loan. An initial interest rate is set for a fixed period after a loan is granted, and then the interest rate is periodically reset afterwards, at yearly or sometimes even monthly intervals. Generally, these loans have caps that limit how much the interest rate can rise.
Government-backed mortgage
This refers to any loan that’s insured by a government agency and can include FHA loans, USDA loans, and VA loans. With a government loan, the backing agency insures the loan to protect the lender from situations where they can’t pay back debt. This reduces the risk to lenders and usually makes it easier for them to offer lower interest rates and down payment requirements. Government loans are offered by private lenders, but not all lenders offer each type of loan, so make sure to do your research.
FirstCCU mortgage loan originators can assist you with your first mortgage, refinancing existing mortgages, home equity loans, home equity line of credit (HELOC), and more. Contact one of our MLOs to start a conversation today!