Perhaps you want to take out a mortgage on your home. But of the options available, which one should you choose? There are three basic kinds of mortgages available to home buyers. Each type of mortgage has different qualifying criteria and advantages. As you’re starting to research prospective mortgages, here are some key facts to know about the different options available.
Fixed-Rate Mortgage Loan
A fixed rate mortgage loan Las Vegas gives you a fixed and therefore predictable interest rate throughout the lifetime of your loan. A fixed rate mortgage locks in a set interest rate starting at the time you take out the loan. This means that your monthly mortgage payments are transparent and predictable. Your monthly payments remain the same, regardless of changes to your homeowner’s insurance, association fees, property taxes, and other expenses. Furthermore, you will be immune from fluctuating interest rates over the course of the loan’s lifetime. Because of its stability and predictability, this type of loan is one of the most popular. While you must make minimum payments with a fixed rate mortgage loan Las Vegas, you can also make payments that exceed the minimum amount each month.
FHA home loans Las Vegas are government-backed loans. These loans are designed to make home-ownership more realistic for lower-income citizens. FHA loans qualify as a type of federal housing assistance. They can be applied to several property types, including multi-unit properties, condos, and single-family homes. FHA home loans Las Vegas are less expensive than conventional mortgages, which makes it easier to refinance or purchase a home. Unlike a conventional mortgage, you don’t have monthly payments with an FHA loan. Instead, you are only required to pay a mortgage insurance premium. An FHA loan is available to individuals with a lower credit score, too. Down payments with FHA loans range from 3.5% with a credit score above 580 to 10% with a lower credit score.
Conventional loans are another option for homeowners. These loans have fewer restrictions, making them a popular choice for those who want more flexible mortgage options. A conventional loan, unlike an FHA loan, is not backed by the government. Conventional loans are classified as either conforming or non-conforming. A conforming loan follows guidelines established by the Federal Housing Finance Agency. A conforming loan has a fixed interest rate and a low monthly payment. A non-conforming loan does not have a lending limit, making it a good choice if you’re looking to buy a more expensive property.
Homeowners in the Las Vegas area have several choices available for a loan. If you have questions about your loan options or need assistance finding the best one for your needs, don’t hesitate to let us know. We will happily provide more details about the options available to help you make an informed decision.