Mortgage Basics>Home Purchase

Home Purchase Mortgages

If you are trading up, or buying your first home, we can guide you through the mortgage choices, and help you get the most advantageous mortgage for your particular situation.

There are many types of mortgages, and options to each type, to fit specific needs.
We will help you look at your financial situation, time you plan to occupy you home, how quickly you want to build equity, whether you want to make a larger or smaller down payment, etc., and match your needs to a mortgage.

Choice # 1: Type of Mortgage

Conventional Loans are loans that conform to guidelines of the Federal National Mortgage Association (FNMA- Fannie Mae) or Federal Home Loan Mortgage Corporation (NHLMC - Freddie Mac). Loans up to 275,000 for a single-family home are available. Generally you must meet tighter requirements than for FHA or VA loans, and have excellent credit.

Jumbo Loans are Conventional Loans over $275,000.

FHA Loans are insured by the Federal Housing Administration. They generally have low down payments and flexible guidelines. We do not provide FHA loans.

VA Loans, guaranteed by the Veteran's Administration, have no down payment, and make it easier for a veteran to get started in home ownership.

Choice # 2: Fixed or Adjustable Rate

A fixed rate loan has an interest rate and monthly principal and interest payment that will not change for the life of the loan. An adjustable rate loan has an interest rate that is linked to an index, which changes over time. This fluctuation in rates causes the interest rate and monthly payment on the adjustable rate loan to change. An adjustable rate loan normally offers a little better rate, due to the fact that you are assuming some of the risk that rates will rise. There are also combination fixed and adjustable rate loans.

More Choices:

Should you pay points? How long a mortgage term do you want? Do you need Private Mortgage Insurance? How much money will the down payment and closing costs require? What is the difference between Pre-Qualifying and Pre-Approval? What are Bi-weekly Mortgages?

We can answer your questions, and simplify the process.

A1 Mortgage at eugene-mortgage.com

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