Learning About What Types Of Mortgages You Can get in Atlanta
Are you finally ready to own a home? Well, it’s understandably normal to feel excited about the prospect. But when it comes to deal with the financial aspect, one can easily get overwhelmed with all the mortgage lingo. However, don’t fret: selecting among the various types of mortgage loans you can get in America isn’t that daunting. Once you’ve gained an understanding of the terms, you can pretty much sail through the entire process.
Here are the common types of Mortgages can you get in Atlanta:
Conventional mortgages
This type of mortgage is a home loan the federal government hasn’t insured. Conventional loans can be categorized into two: non-conforming and conforming loans. When you make a down payment that’s 20% less the home’s valuation, the lender(s) will need you to pat private mortgage insurance. This loan is suitable for borrowers with a stable income, employment history, strong credit, and making a down payment of about 3%.
Jumbo Mortgages
This mortgage is basically a conventional type of mortgage with non-conforming loan limits. This meaning the home price is more than the federal loan limit. As of 2020, the maximum limit for single-family homes in most America is $510,400. In other high-cost locations, the loan limit can be in excess of up to $765,600. The best part of jumbo mortgages is that you can get a substantial loan to acquire a home in a high-end area. This loan is more suitable for affluent buyers looking for an expensive home. Borrowers need to have a high income, excellent credit and make a significant down payment.
Fixed-rate Mortgages
This mortgage loan maintains the exact interest rate over the loan’s lifespan, meaning the monthly installments you make will always remain the same. The life of fixed loans is 15 to 30 years. This will allow you to budget for other things month to month and create a sense of stability.
Adjustable-Rate Mortgages
Unlike fixed-rate mortgage loans, ARMs interest rates fluctuate up and down depending on the market conditions. Most ARMs have a fixed rate for a couple of years, from where the interest becomes sporadic for the term’s remainder. If you’re not considering sticking around for long, then an ARM can be just what you’re looking for.
Interest-Only Mortgages
With this loan, rather than paying the full amount, you’ll be paying the interest on it for a period of like 5-7 years. The monthly payment will be decreased and won’t impact the loan. After your term has lapsed, you’ll be required to pay the full amount.
As Well as the type of Mortgage your credit rating can effect the amount you pay as will the amount of downpayment. Click those links to read more about how those factors come into play.
Other kinds of mortgage loans you can get include construction loans, Government-insured mortgages, Combo, and balloon mortgages. Before pulling the trigger on a particular mortgage, you should first consider the financial state you’re in. After reviewing the different types of mortgages available, you can easily nail down a budget, check your credit and down payment amount. This way, you’ll know the kind of loan that best meets your needs. It is always advisable to speak things over with a qualified Atlanta Mortgage Broker to ensure you begin your new life as a homeowner the right way.