Understanding Different Options for Home Loans in Greensboro, NC
As a first-time homebuyer, it’s understandable that you’re having a tough time figuring out all the home loan options you can access. Or even if you’re now looking to purchase an additional property, the type of home loan you applied before may not fit your current circumstances.
After funding over $2 billion of mortgages here at Mortgages By Jill, we’ve developed an expert understanding of home loans in Greensboro, NC.
Go through this list and find one that fits your needs and circumstances.
Conventional mortgages
Conventional mortgages are those that lack any kind of backing from the government.
30-year-fixed mortgage
This is the most common type of home loan in Greensboro, NC, and all over the U.S.
Once you take out a 30-year mortgage, your interest rate never changes for the entire life of the loan.
And you’ll also have lower monthly payments than with a home loan covering a shorter repayment period.
You could decide to repay the loan faster by adding to your monthly payments.
15-year-fixed-rate mortgage
This type of home loan is often used for refinancing, and it has an interest rate that is set for the life of the loan.
The interest rate is typically lower than that for longer-term mortgages, but the monthly payments also tend to be higher.
Adjustable-rate mortgage
Adjustable-rate mortgages start with an initial rate that’s fixed for a specified period. Then, after that period, the interest rate is adjusted at agreed-upon intervals.
As an example, a 5/1ARM will have the same interest rate for the first five years. Each year after that, the rate is adjusted annually.
The initial rate, also known as the “teaser rate” tends to be lower than that for most other types of home loans.
Jumbo mortgage
Jumbo home loans are mortgages that exceed a certain amount, which varies from county to county and is adjusted periodically.
A jumbo mortgage can have either fixed or adjustable rates, and it often requires a credit score of 700 or higher to qualify.
The down payment is almost always 10% or more.
Interest-only mortgage
With an interest-only mortgage, you only make payments on the lender’s interest charge. The loan balance or principal amount doesn’t change during the payment period.
Before you can get approved for this mortgage, though, you’ll have to demonstrate to lenders that you own substantial assets or that you have a proven ability to make consistent payments.
Government-backed mortgages
Government-backed mortgages are those that are guaranteed or issued and backed by various departments of government. These include the Department of Veterans Affairs, the Federal Housing Administration, and the Department of Agriculture.
FHA mortgage
An FHA mortgage is a home loan insured by the Federal Housing Administration. It’s backed by the government and meant to help borrowers on lower incomes purchase homes.
Unlike other types of home loans in Greensboro, NC that require down payments of 20%, FHA mortgages can stipulate down payments as low as 3.5%.
VA mortgage
A VA mortgage is backed by the Department of Veterans Affairs, and you automatically qualify if you’re a serving member of the military or a veteran.
There’s typically no down payment required for this type of loan.
USDA mortgage
This type is issued by the US Department of Agriculture. There’s no down payment on most properties,
However, this option is subject to income limits and value caps on properties.
Let Mortgages By Jill help you decide on options for home loans in Greensboro, NC
Jill Burgess has been helping aspiring homebuyers like you apply for mortgages for over 30 years. Whether you’re still trying to figure out the right type of home loan or you need an expert to help you apply, let Jill help. Get in touch today by calling (336-740-9068), or leave a message to schedule an appointment.
