What Type of Fort Lauderdale Mortgage is Right for Me?

There are many different types of mortgages available in the Fort Lauderdale area, and by no means is any one loan right for everyone. You want to look at all the options available and decide which one fits your needs best. To help you in choosing the mortgage program you need, here is a list of options and some information about each of them.

Conforming Loans

This is the type of loan that most people think of when they say mortgage. Conforming loans are loans that follow the rules and regulations put in place by Fannie Mae and Freddie Mac. Conforming loans are either fixed rate mortgages or adjustable rate mortgages.

Fixed rate mortgages

Adjustable rate mortgages and fixed rate home loans

These mortgages have interest rates that remain fixed at the same amount you agreed to at the beginning of your loan. Most home buyers get fixed-rate mortgages because they prefer the stability of a more consistent monthly payment. These types of mortgages are great for people who plan to stay in their home long term.

Adjustable rate mortgages

Unlike the fixed rate mortgage, these home loans have interest rates that fluctuate. This type of mortgage is attractive to people who are not looking to stay in their homes long term because there is usually a period of 3 to 5 years where a borrower is locked into a low introductory interest rate before the interest rate starts to change.

Regardless of if you get a fixed rate or an adjustable rate mortgage, most of these loans come in 5 to 30-year increments. For a conforming loan, you typically need 5 to 20% of the cost of the home for a down payment, depending on your credit score and risk assessment with the lender.

FHA Loans

If you are trying to buy a home, but you find that your finances are not as great as you would like them to be, you may still be able to get a home loan. The Federal Housing Administration guarantees loans to assist low and moderate income people and families in qualifying for a mortgage. With the ability to be approved with a credit score as low as 580 and a down payment as little as 3%, FHA loans can be a real boon for people who are eligible for these mortgages. 

VA Loans

The US Department of Veterans Affairs guarantees this type of mortgage. The involvement of the VA means that you must first qualify under the VA’s loan program. If you are eligible for their program, you could get a home with an exceptional interest rate and a $0 down payment. By having a VA loan, you will not have to pay mortgage insurance and sometimes closing costs are even waived.

Jumbo Loans

Jumbo Loans Fort LauderdaleOften, when you live in an area that has higher market values, you will have to get a jumbo loan. This means that the mortgage amount that you will need is above the amount that government loans will cover. Typically, this includes loans that are larger than $417,000. Some areas do allow for mortgages with amounts upwards of $625,000 without being considered a jumbo loan; however, those areas have an extremely high cost of living. Due to these types of mortgages having a higher value of money being borrowed, most lenders generally require a more substantial down payment from the borrowers. Most of the time a 30% down payment and a credit score of at least 680 is required to be approved.

Reverse Mortgage

This type of mortgage requires you to have a house already. Reverse mortgages are geared toward seniors who are 62 years of age or older and who already have equity in their home. With a reverse mortgage, the borrower can use the money gained from the loan to buy a vacation home or supplement their income for medical bills or travel.

Nationwide Home Loans and Fort Lauderdale Mortgages

Nationwide Home Loans and Fort Lauderdale MortgagesHere at NHL Lending, our team of expert loan officers would be more than happy to discuss with you all the various kinds of mortgages listed here. We will not only go over if you qualify for each type of loan but also if each option is right for your financial needs. Nationwide Home Loans have some of the best mortgage rates in Fort Lauderdale as well as some of the most knowledgeable team members. With the various possibilities available, our staff is sure to be able to find a mortgage solution that will set you on the pathway to getting your new home. Contact us today to talk about your future as a homeowner.

By |2019-01-03T16:13:31+00:00December 31st, 2018|blogs|0 Comments

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