NEED A MORTGAGE?
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Whether you are just getting started in life or financing your 3rd house,
Homes and Loans is the best place for your mortgage!
We offer the individualized and experienced service of a small local company with the resources and full range of mortgage products from some of the nation's largest lenders.
Our rates and closing costs are lower than average and the level of service unmatched. We have the right mortgage product for everyone. Wondering if refinancing makes sense for you? Need to know how much house you qualify for? Call us!
MORTGAGE PRODUCTS WE OFFER
Most loans are 'conventional' loans. They can be any length term, but typically are a 15 or 30 year term.
The down-payment can be as low as 3%.
The interest rate may be fixed or variable, and the rate that YOU obtain depends on your credit score and the amount of your down payment.
If you put less than 20% down, you will pay 'Principal Mortgage Insurance'. PMI is insurance for the bank, not you. It is tax deductible for most borrowers, similarly to mortgage interest. The lower the down payment, the higher the cost of PMI insurance. Sometimes you may opt for a higher interest rate and not pay PMI, but it's not always the best option. The more you can put as a down payment the lower your PMI costs will be.
FHA stands for Federal Housing Administration. FHA loan rules are set by the government.
Currently, FHA will have a lower interest rate than a conventional loan, but much higher cost to it's version of mortgage insurance, called MIP.
The down payment is 3.5% of the purchase price. Since the rules are different than for conventional borrowers, and FHA is designed to help 'low to moderate income' buyers, then sometimes an FHA loan is the best option.
Usually FHA is a 30 year fixed rate loan, but can be 15 year fixed or an adjustable rate.
VA is the acronym for Veteran's Administration loans.
Most veterans are eligible to obtain a VA loan, and it is a great loan product and benefit for those who have served our country. The down payment is zero. There is NO PMI cost!
There is a 'funding fee' which gets financed into the new mortgage.
USDA or RD
RD stand for Rural Development.
This is a government agency loan that is designed to get more people to move into rural areas.
If you are purchasing in a designated rural area, and your family income is not above the limits set by the program, then you should consider this mortgage product. The down payment is zero and there is no PMI.
There is a funding fee much like the VA program. At times, the government lets funding for the program lapse, and it may take longer to close on this type of loan or become temporarily unavailable.
Loans that don't fit into any of the previous categories are lumped in ' non-conforming '.
This may mean the loan is larger than $420,100, or it may mean the borrower's credit does not fit into the box of rules for any other program. We have sources for these loans, but it is best to try very hard to obtain a ' conforming loan ' first.