Every home is different and every person has a unique financial situation. A mortgage that works for your friend’s family may not be right for yours. You’ll want to consider all your options. Choosing the right loan for your individual circumstances helps ensure you’ll be approved and could also save you thousands of dollars over the life of the mortgage.
Below is a list of some of the mortgage products we offer at Santa Fe Mortgage. One of our associates will work with you to determine which one is the best fit for your needs.
A fixed-rate mortgage has an interest rate that won’t fluctuate. No surprises. Your monthly principal and interest payments will stay the same for the life of your home loan. Your down payment may range from 5% to 20% of the purchase price. Terms range from 10 years to as long as 30 years.
Are you a United States veteran or service member? If so, you’re eligible for a VA Loan. These loans are issued by qualified lenders and often have favorable rates and terms because they’re guaranteed by the U.S. Department of Veterans Affairs (VA). In some cases, veterans can even obtain financing with $0 down!
An FHA loan is a mortgage from an FHA-approved lender and insured by the Federal Housing Administration (FHA). Ideal for low-to-moderate income borrowers, FHA loans allow for lower credit scores and down payments (as little as 3.5% down!) than many conventional loans.
An Adjustable Rate Mortgage type of loan starts off lower than a fixed-rate mortgage, but it may not stay lower. The interest rate is fixed for a specific period of time, after which it resets periodically, often every year or even monthly throughout the life of the loan. An ARM may make sense if you plan to stay in the home you’re buying for 10 years or less.
High Balance Loan
House prices vary based on their locations. A home in Lompoc, California, for example, will cost you substantially less than the same home in San Francisco. A high balance loan is a good option for high-cost counties where the median values for single-family homes usually exceed the conforming loan limit, which is currently $484,340 in the lower 48 states and $679,650 in Alaska and Hawaii.
Need a loan that falls in the range of $484,340 to $3 million? That’s above the conventional conforming loan limits set by the Federal Housing Finance Agency (FHFA), so you’ll need to consider a jumbo mortgage. Jumbos are designed to finance luxury homes in highly competitive local real estate markets. They offer reasonable rates with ARM and 15- and 30-year fixed-rate options. But expect to face much more rigorous credit requirements than you would for a conventional loan.
These are the most common loan products, but even once you decide on the type of loan you want, it still pays to shop around. Different lenders offer different rates and terms.
As a mortgage broker, Santa Fe Mortgage can simplify and manage the process for you by applying for loans with different lenders on your behalf. We’ll find the most competitive interest rate, negotiate the best loan terms for your personal situation and provide a hassle-free, loan-processing experience. Best of all, our services can be free to home buyers!
Contact us today for a free, no-obligation consultation to discuss your mortgage options or to get a free pre-approval that you can use for leverage when shopping for your new home.