Choosing the right loan program can save you time and money when applying for a mortgage. Our mortgage broker professionals will help you understand your options while assisting you with making an informed decision when choosing a lender. Listed below are some of the loan programs available to buyers.
Types of Loans Available thru Rhino Funding
1. Conventional Fixed Rate – The most common type of mortgage program where the interest rate is fixed and never changes. Fixed rate mortgages are available for 30 years, 20 years and even 10 years. On a 30-year loan you pay 360 equal payments of principal and interest over the life of the loan. Likewise, 20, 15 and 10-year loans are characterized by equal payments, but have a shorter pay-off period with higher payments and slightly lower interest rates. You can save over 50% on interest with a 15-year term.
Fixed rate fully amortizing loans have two distinct features. First, the interest rate remains fixed for the life of the loan. Secondly, the payments remain level for the life of the loan and are structured to repay the loan at the end of the loan term.
You can avoid mortgage insurance on a fixed rate mortgage by having a down payment of 20% or more, however you can put a down payment for as little as 5% with PMI.
2. FHA Loan – These type of loans are insured and guaranteed by the full weight of the United States government. These loans help borrowers with less than perfect credit (down to a 620 credit score) purchase a home. The down payment on this loan is only 3.5% and up to 6% of the closing costs can be paid for by the seller. This loan does have a double mortgage insurance. The first part is wrapped into the loan amount and the second part is paid monthly. The interest rate on this loan is typically an 1/8 of a point lower then a Conventional Mortgage.
3. FHA 203-K Rehab Loan – This loan is a fully disbursed mortgage that adds the costs of repairs and or improvements into the mortgage to purchase or refinance a property.
4. VA Loan – Borrower’s must be veterans or currently serving in the armed forces. These loans require NO down-payment. A VA loan does not have a monthly paid mortgage insurance however a funding fee is charged and wrapped into the loan amount. Interest rates are equivalent to an FHA loan.
5. USDA Loan – 100% financed properties, no mortgage insurance. Home must be qualified through USDA. Visit website for eligibility. http://eligibility.sc.egov.usda.gov
6. Adjustable Rate (ARM) – These loans generally begin with an interest rate that is 1 to 1.5 percent below a comparable fixed rate mortgage, however, the interest rate changes at specified intervals (for example, every year) depending on changing market conditions; if interest rates go up, your monthly mortgage payment will go up, too. However, if rates go down, your mortgage payment will drop also. These loans are more risky and should be done with caution.
A few options are available to fit your individual needs and your risk tolerance with the various market instruments.
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