What Mortgage Options Are Best for You?

Houston Mortgage Company

When it comes to finding a mortgage, explore options with different lenders and the various products offered. Major banks, credit unions and nonbank lenders offer a variety of options to better fit your specific needs as a homeowner.

“There is a right, best product fit for each individual based on their circumstances and what they’re trying to accomplish,” says Joe Zeibert, senior director of products, pricing and credit for Ally Financial Inc.

Key to figuring out which program is best for you is how much cash you have for a down payment. By putting 20 percent of the home price down or paying for private mortgage insurance for a smaller down payment, you can qualify for a conventional mortgage.

Alternatively, you can put less money down with other options, like an FHA loan through the Federal Housing Administration, which requires less money down and a less impressive credit history but typically comes with a higher interest rate. Veterans are able to take advantage of VA loans, backed by the U.S. Department of Veterans Affairs, which require no money down but have additional fees.

There are many loan product varieties, and your interest rate can be fixed, most commonly in the form of a 30-year, fixed-rate mortgage, or adjustable, known as an adjustable-rate mortgage, which remains fixed for a specified number of years before changing gradually toward the industry rate.

In finding the mortgage product that works best for your financial situation, it’s essential to prequalify or get preapproved for a mortgage amount. This will let you know how much your lender is willing to loan you to buy a house.

But don’t take that maximum approved number as the price you should pay for a house. “In most cases, you shouldn’t borrow the maximum amount that a mortgage lender tells you [that] you can borrow,” Dabit says – otherwise you may find yourself having to skimp on other typical expenses, like food, for a few years or more.

Source: usnews

Financial Capital Group, LLC is a lender that provides home and commercial finance solutions for business, professionals, individuals and families since 1999. Our love and care for others is directed as much within our walls as it is outside of them. Our desire is to work together to meet the needs of our customers.

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