Fixed-Rate.
Want stability? A fixed-rate loan gets you evenly divided monthly payments
spread over 15 or 30 years. You'll know exactly what your payments will be
next month, or 117 months from now. Other loan types might offer somewhat
better rates, but this is the one you'll never have to think of again.
Down payments, depending on the loan, can be as low as five, three, or
even zero percent!
Adjustable-Rate.
Want flexibility? Want a real shot at saving money? Payments tend to be
lower with an adjustable-rate mortgage (ARM), because you share some of
the lender's risk should interest rates rise significantly in the future.
(But don't worry too much. Annual and lifetime caps keep rates in check.)
Generally, ARMs are easier to qualify for, allow you to buy a little bit
more of a home, and offer significant savings up front - which you could
use to buy needed household items, or to "grow" into future payments after
promotions or pay raises at work.
"Hybrid ARMs."
Want the qualifying ease and lower payments of an adjustable? At the same
time, do you want the stability of a fixed-rate? A North American Mortgage
Company "hybrid ARM" offers the best of both worlds! You can have your
payments fixed for three, five, seven, even up to 10 years. Your choice.
After the fixed period, the loan becomes adjustable. But during that
multi-year, "fixed" period, you'll enjoy a below-market rate. If you're
like most people, you'll get a new mortgage every five to seven years
(either because you refinance or move). A "hybrid ARM" is a smart way to
have lower payments during the likely life of your loan.
Jumbo. Want a
bigger home, or do you live in a high-cost area? Jumbo refers to loans
that are above the "conforming" loan limits established each year by
Congress. Currently, it's $300,700 (even more in Hawaii and Alaska).
Conforming loans offer the best rate. Jumbo loans, because of a greater
hit to the investor in the rare event of borrower default, are generally
priced between one-fourth, and one-half point higher than conforming
loans. Jumbos come in fixed and adjustable varietals.
Government.
Not all lenders can offer government loans. Special standards for direct
lending are required by the Feds. North American Mortgage Company exceeds
these standards.
FHA loans are used
by the government to help increase home ownership. Characterized by
exceedingly low down payments, and more forgiving of credit history, an
FHA loan is an affordable way to buy affordable housing. Loan limits vary
from state to state, and metro area to metro area.
VA loans are
available to individuals who served in the armed forces. Easier
qualifying, low to no down payments, and very attractive rates are the
nation's way of saying "thanks" to those who served our country.
