The most common type of loan option, the traditional fixed-rate mortgage includes monthly principal and interest payments which can never change during the loan’s lifetime. These are typically amortized and fixed for periods of 15-year or 30-years. Borrowers can also choose between 10-year or 20-year options, and almost and period of time in between. Because the term of the fixed period can dramatically affect your cashflow, it is important to carefully weigh your options before you decide on the term length. At New Vintage Mortgage, we can show you how different term lengths will impact your finances and find an option that best suits your needs.
Adjustable-rate mortgages include interest payments and interest rates which will change during the loan’s term, potential on a daily, or monthly basis depending on current market conditions. Typically used to secure unusually low rates at a high market risk, an Adjustable–Rate Mortgage can be the perfect strategy for very specific lending needs often related to high loan balances, short term real estate holding and commercial and investment properties.
Hybrid ARM mortgages combine features of both fixed-rate and adjustable-rate mortgages and are also known as fixed-period ARMs.These loans carry a fixed-interest rate for a set period of time before adjusting and are commonly used to secure a lower interest rate than a long term fixed rate program improving cash flow and purchasing power. Making the decision to use an ARM program for your loan can have very beneficial or negative impact on your financial situation. Our loan advisors can provide all available options and guide you to the most effective program to use.
FHA home loans are mortgages which are insured by the Federal Housing Administration (FHA), allowing borrowers to get low mortgage rates with a minimal down payment.
VA loans are mortgages guaranteed by the Department of Veteran Affairs. These loans offer military veterans exceptional benefits, including low interest rates and no down payment requirement.
Interest only mortgages are home loans in which borrowers make monthly payments solely toward the interest accruing on the loan, rather than the principle, for a specified period of time. Interest Only loan strategies are carefully implemented and used by borrowers to keep funds liquid and improve cashflow.
Reverse mortgages allow senior homeowners to convert a portion of their home equity into cash while still living in the home. These loan programs have been significantly improved upon over the past ten years. They are now regulated very closely and often recommended by Financial Advisors and Estate Planners becoming a strategic tool for passing on wealth and allowing homeowners to age in place.
Should you get a fixed-rate or adjustable–rate mortgage? A conventional loan or a government loan? Deciding which mortgage product is best for you will depend largely on your unique circumstances, and goals.Contact us for professional advice and let us find the right loan program for you.