Welcome to Garv Financial just a quick reminder; please remember to read the tutorial five stars at the end. This is Gaurav Bhola and the tutorial is about Home Loan Mortgage Choices for your Next Home. This tutorial coverage several types of mortgage loans, the following are commonly offered home loan choices. Fixed-rate mortgages, jumbo loans, adjustable rate mortgages are arms, interest only mortgage loans, and 100% financing, conforming loans, conventional loans, second mortgages, subprime mortgages, hybrid loans, government loans. Fixed-Rate Mortgages; you get fixed rate for the term of the home loan, the mortgage payment is the same for the ten year of the home loan term. These provide you protection against any rise in future mortgage raise. You may want to evaluate mortgage refinancing that mortgage rate are lower than your existing home loan interest rate.
Jumbo loans, mortgage loan amounts that are above Fannie Mae & Freddie Mac loan limit also known as non-conforming loans, usually subject to interest rate pricing premiums. Adjustable rate mortgages come with initial interest rates that are lower than fix rate home loans. Your initial interest rate is fixed for second period of time then it becomes variable. Then the interest rate readjusts periodically. Interest only mortgage loans, you have the autonomy to pay only the interests on the mortgage in monthly payments for fix term. Commonly five to seven years after which you can pay off the mortgage balance refinance or begin paying off the principal at the end of the interest’s only payment period.
100% financing, you requires your down payment complete half home financing is providing however in order to get the home loan, a credit scores of 620 or higher is needed. Conforming loans, mortgages qualified for purchase, for purchase by other Fannie Mae or Freddie Mac. The loan limits our reviewed annually, change limits to reflect changes in the national main price for single-family homes. Conventional loans, home loans not insured or guaranteed by the Federal Government. Requires a higher down payment on the loan compared to guaranteed government loans. Interest only interest rates, mostly exceed FHA and VA loans. Second mortgages, mortgage loan taken out after the first mortgage, second mortgages are secured against the same asset as a primary home loan. Mortgage is base on the equity or ownership entrust in the residence commonly known as the Home Equity Line of Credit or HELOC. HELOC are mainly used for college tuition, home improvements, debt consolidation and other purposes.
Subprime mortgages, home loans are for consumers who can’t meet prime financing criteria. Subprime mortgages have high interest rate in conventional mortgages due to higher associative risks. Hybrid mortgages are home loans that have a combination of fix interest in mortgages and it does full rate mortgages. For a certain term, the hybrid loan has a fix rate after which it becomes an arm. Government loans, mortgages guaranteed or insured by the Federal Government. My name is Gaurav Bhola, thank you very much for watching the tutorial on Home Loan Mortgage Choices for your next home. More financial tutorial are available at garvfinancial.com, don’t’ forget to rate at the tutorial five stars.
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