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Loan Types to Consider

Buying a home takes ample planning. One of the first essential hurdles for Buyers to overcome involves obtaining the funds to purchase a home. You should consult with a mortgage lender and obtain information on the various loan programs offered and available. Sharing your real estate plans with a loan professional will permit them to suggest a program ideal for your budget and goals. The following information on mortgage basics offered by the NATIONAL ASSOCIATION OF REALTORS® and posted by David Stewart provides some basic terminology.

If you're considering the purchase of a home, condo, townhome or property in Lafayette, LA or greater Acadiana, contact us! We can provide the professional assistance you need and offer guidance to ensure you meet your goals. For a list of lenders who service the greater Lafayette, LA area, visit: www.iListForLess.com and select the RE-Sources link.

We set the standard for exceptional service in Lafayette, Abbeville, Breaux Bridge, Broussard, Carencro, Crowley, New Iberia, Opelousas, Rayne, Scott, St. Martinville, Ville Platte, and Youngsville. 

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Loan Types to Consider

Brush up on these mortgage basics to help you determine the loan that will best suit your needs.

  • Mortgage terms. Mortgages are generally available at 15-, 20-, or 30-year terms. In general, the longer the term, the lower the monthly payment. However, you pay more interest overall if you borrow for a longer term.
  • Fixed or adjustable interest rates. A fixed rate allows you to lock in a low rate as long as you hold the mortgage and, in general, is usually a good choice if interest rates are low. An adjustable-rate mortgage is designed so that your loan's interest rate will rise as market interest rates increase. ARMs usually offer a lower rate in the first years of the mortgage. ARMs also usually have a limit as to how much the interest rate can be increased and how frequently they can be raised. These types of mortgages are a good choice when fixed interest rates are high or when you expect your income to grow significantly in the coming years.
  • Balloon mortgages. These mortgages offer very low interest rates for a short period of time - often three to seven years. Payments usually cover only the interest so the principal owed is not reduced. However, this type of loan may be a good choice if you think you will sell your home in a few years.
  • Government-backed loans. These loans are sponsored by agencies such as the Federal Housing Administration or the Department of Veterans Affairs and offer special terms, including lower down payments or reduced interest rates to qualified buyers.

    Slight variations in interest rates, loan amounts, and terms can significantly affect your monthly payment. For help in determining how much your monthly payment will be for various loan amounts, use Fannie Mae's online mortgage calculators.

This has been Reprinted from REALTOR® magazine (REALTOR.org/realtormag http://www.realtor.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2008. All rights reserved.

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David Stewart- Realtor

 

David Stewart

820 Oak Harbor Blvd

Slidell, LA 70458

(985)710-1728

dstewart.realestate@gmail.com



We set the standard for EXCEPTIONAL SERVICE in Acadiana!


i List For Less Realty is home officed in Lafayette, and services the surrounding communities of Abbeville, Breaux Bridge, Broussard, Carencro, Crowley, New Iberia, Opelousas, Rayne, Scott, Saint Martinville, Sunset, and Youngsville. 

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(337) 212-5373

  

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Comment balloon 2 commentsMike Mayer • September 15 2010 09:26PM

Comments

Good repost and good information about different loans. . 

Posted by Fernando Herboso - Broker for Maxus Realty Group, 301-246-0001 Serving Maryland, DC and Northern VA (Maxus Realty Group - Broker 301-246-0001) over 8 years ago

There are many loan programs available selecting the right one is key, that is why it is so important to find a loan officer to help explain the different loans.

Posted by Rebecca Gaujot, Realtor®, Lewisburg WV, the go to agent for all real estate (Vision Quest Realty, Martha Hilton, Broker) about 8 years ago

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