FHA Loan: The FHA Loan is a loan option that is popular with many individuals due to its lower down payment and easier lending restrictions. An FHA Loan is a loan that is insured by the Federal Housing Administration and in return a borrower will pay mortgage insurance to protect the lender in the event that the borrower defaults. FHA Loans often have lower interest rates and easier restrictions because the FHA loan is backed by the Federal Housing Administration and insured.
FHA Loans usually work well for individuals who want:
A lower down payment
Easier credit and qualification restrictions
Fixed Rate Mortgage: The Fixed Rate Mortgage is the most typical type of home loan option, with a Fixed Rate Mortgage the interest rate stays the same throughout the life of the loan, because the interest rate remains the same, the principal and interest on the loan will remain the same as well – this is one of the perks of having a Fixed Rate Mortgage. A disadvantage however is that you will usually have a higher interest rate than an Adjustable Rate Mortgage. Typical Fixed Rate Mortgages are the 30 year and the 15 year fixed.
Fixed Rate Mortgages typically work well for individuals who:
Plan on staying in their home for several years
Prefer a mortgage payment that is fixed and does not change
Contact Hugh Blevins today to find out more about how Southlake Mortgage can help choose the perfect home loan option for your financing needs.