When you are shopping for a mortgage, you will have a variety of options. Deciding which mortgage is right for you can be a challenge if you’re trying to go at it alone. Enlisting the assistance of experienced loan officers from Starboard Financial can help make the process a lot easier.
Types of Mortgages
- Conventional Mortgage – Conventional mortgages are the most common type of mortgage. They require the borrower to meet specific income, credit and down payment standards in order to qualify.
- FHA Home Loans – FHA home loans are mortgages backed by the Federal Housing Administration. They have less stringent qualifications than conventional loans, making it easier for borrowers to qualify. However, they come with private mortgage insurance.
- VA Home Loans – VA mortgages are mortgages backed by the Veterans Administration. They are available to veterans and active members of the military.
- USDA Home Loans – USDA home loans are backed by the United States Department of Agriculture. They are available to borrowers in specific regions of the United States.
Mortgages also come with two primary types of interest rates: fixed and adjustable. While fixed-rate mortgages keep the same interest rate over the life of the loan, adjustable-rate mortgages come with a variable interest rate that may change over time.
Choosing a Mortgage
The type of mortgage that is best for you depends on your credit history, income, available funds and mortgage goals. For example, if you have a solid credit history and enough money to put at least 20 percent down on your mortgage, choosing a conventional loan will eliminate the need for private mortgage insurance and save you money each month. On the other hand, if your credit score is low or you have limited available funds, you may benefit more from one of the other options available.
To find out which mortgage option will benefit you most, it’s best to consult a mortgage lending company like Starboard Financial. Our experienced mortgage professionals will be happy to help you compare your options and make the best possible choice.