What type of mortgage is right for me?
Each situation is different, but here are some guiding principles for each type of mortgage:
30-year fixed-rate mortgage – The most common option, typically has a lower monthly payment and your payment doesn’t change.
15-year fixed-rate mortgage- Similar to the 30-year fixed-rate mortgage, this option pays off your mortgage in 15 years, saving you money on interest.
7/1 ARM – ARM stands for an adjustable-rate mortgage which means your interest rate can fluctuate after 7 years. Generally, this is best used if you know you’ll be in the home for less than 7 years because the interest rate could go up after those 7 years.
5/1 ARM – Similar to the 7/1 ARM, but the interest rate can change after 5 years
FHA 30-year fixed – Best for homebuyers with lower credit scores. Also, a great option if you want to put down a smaller down payment.
VA loan – 30-year fixed-rate for qualifying veterans and active military. The benefit of this loan is not being required to put any money down and avoiding PMI.
Jumbo funding – These are for loan amounts that exceed conventional loan limits