Key Real Estate Group LLC
David D. Sullivan, Key Real Estate Group LLCPhone: (720) 448-7236
Email: [email protected]

5 Home Loan Options to Explore

by David D. Sullivan 02/09/2020

Image by StockSnap from Pixabay

One of the most important factors of the home buying experience is the mortgage loan you undertake. With at least eight different types, there are five that are the most common. The following types of mortgage loans are the ones held by most homeowners in the United States. 

1. Conventional Mortgage

A conventional mortgage is the standard mortgage that comes to most people's minds when they think about qualifying for a loan. Distinguished because of their fixed interest rate and consistent monthly payments, conventional mortgages are available in terms ranging from 10 to 40 years with 15 and 30-year loans the most common. 

2. Adjustable-Rate Mortgage

An adjustable-rate mortgage might also be referred to by its acronym: ARM. There are a number of different types of ARMs but their basic premise is the same. The interest rate tied to the mortgage fluctuates according to factors like changes in the cost of borrowing money and other economic factors. The 5/1 loan is a common type of ARM. The interest rate charged on the loan remains the same over the first five years of the loan. For the remaining 25 years, the interest rate can change. 

3. Interest-Only Mortgage

An interest-only mortgage can be a valuable economic tool but it's best undertaken by those who understand its implications. During the first 5 or 10 years of an interest-only mortgage, you can opt to pay only the interest on the loan. You aren't obligated to pay only the interest during that time. After the first 5 or 10 years, the loan is treated like its a conventional mortgage. 

4. VA Loans

VA loans are backed by the federal government, overseen by the Department of Veteran Affairs and don't require a down payment. These loans are limited to members of the military. In some cases, spouses can take advantage of VA loans. 

5. FHA Loans

Backed by the Federal Housing Administration, FHA loans include mortgage insurance that is built into them. This helps protect the lender in the event that the home buyer cannot repay the loan. FHA loans also have lower down payments which are designed to help more people purchase a home.  

In some cases, a seller might not want to participate in a particular mortgage loan. Your real estate agent is a great source of information about mortgage options, check with them for more guidance.

About the Author
Author

David D. Sullivan

"I can Help You achieve your Real Estate Goal. Free Consultation!"

Hi, I’m David Sullivan; I’m a residential Real Estate Specialist.

I work in the Denver metro area helping people buy or sell homes and investment property. For most people, their home is not only a place to live and raise a family; it’s also their most important financial investment I understand the importance and will ensure your best interest throughout the course of the Real Estate transaction. I’ve been in a military family, traveled the world and connected with a diverse and amazing group of people. I love helping people with real estate transactions. My life revolves around family, home, and helping people with their dreams of home ownership or selling and maximizing Sellers profits. Yes, I’m living the American Dream! Real Estate can be a very complex and overwhelming area to work in. It’s not always easy to juggle all the requirements of representing buyers and sellers, It’s really a 7 day a week job; I’m never “off the clock” and always willing to work hard and smart for my clients to ensure they get what they want. I get a great feeling from helping people buying or selling their home. If you would like to sit down with me to talk some more of how I can help you with your real estate plans, please email at [email protected] I’m here to help you Reach your Real Estate Goals!

Specialties:

Buyer's Agent, Listing Agent, Relocation, Foreclosure

There are many different facets to Real Estate, depending upon your individual situation I can provide expertise for:


1) First Time Home Buyers.
2) Listings(Selling your Home and receiving Best Offers)
3) Relocation.
4) Investors.
5) Upgrading Or Downsizing.
6) For Sale By Owner.
7) Short Sales.
8) VA and Military