Explaining the 3 Most Common Mortgages
For the majority of Americans, the biggest expensive that they will have in their lives is their mortgage. At the Marino Lending Team, we know that a Naperville mortgage can be confusing and at times frustrating to understand, and we are here to make sure that you fully understand the various types of mortgages and which ones are right for you!
As, your trusted mortgage lenders we take pride in staying up to date on the latest Naperville Mortgage trends so that we can answer and questions or concerns you may have about the mortgage process.
In this blog post we will explain and go over the three most common types of mortgages, so that you can get a better understanding of the different mortgage options that are available to you.
Conventional home loans, are any type of home loans that are not backed by a federal agency, such as the U.S. Department of Veteran Affairs, U.S. Department of Agriculture or Federal Housing Administration.
A conventional mortgage can be a fixed-rate, adjustable-rate or a jumbo mortgage and they are the most common type of mortgage and represent around 2/3 of all home loans issued in the USA
The interest rate of conventional mortgage depends on several factors, including the terms of the loan: its length, its size, and whether it is fixed-rate or adjustable-rate – as well as current economic market conditions.
A conventional loan is perfect for people with a good income, high credit score and stable job, as it offers more flexibility in terms and has less restrictions compared to the government-backed products.
FHA (Federal Housing Administration) Loans
FHA loans are insured by the Federal Housing Administration (FHA), and were created to help make loans accessible and affordable for people with less than stellar credit or a low down payment.
FHA loans are beneficial for first time home buyers as it allows down payment options as low as 3.5%. Another unique feature is that 100% of the money needed at closing is allowed to be a gift from a relative, non-profit organization, or government agency.
This type of mortgage is also ideal for people with credit issues or low credit get approved for their home loan, but borrowers must pay mortgage insurance premiums, which protects the lender if a borrower defaults.
VA (Veteran Affairs) Loans
A VA loan is a mortgage loan guaranteed by the United States Department of Veterans Affairs (VA). The program is for American veterans, military members currently serving in the U.S. military, and reservists.
There are some major benefits of this type of loan vs traditional mortgages. A VA loan needs 0% and since it is backed by the government you do not need to buy PMI (Private Mortgage Insurance), which usually makes monthly payments less than other no-down-payment loans.
While all this may be complex and overwhelming, and it is important that you have the information you need to make the best choice that you can. The Marino Lending team can assist you in the whole home loan process and ensure that you are getting the right Naperville Mortgage for you.
The Marino Lending Team and First Centennial Mortgage offer a full menu of loan products. Whether you are buying your first home, moving up to a nicer home, relocating or want to refinance your current home, we have a loan that will fit your needs.
To get started, contact us online or call 630.983.3604 to get in touch.
The Marino Lending Team
630.788.7859 (Mobile) | 630.983.3604 (Office)
NMLS ID #209516 | License: IL #031.0002979
847.804.1059 (Mobile) | 630.806.2870 (Office)
NMLS ID #244399 | License: IL #031.0037907
815.757.6944 (Mobile) | 630.947.0562 (Office)
NMLS ID #1542842 | License: IL #031.0045066
651 N. Washington Street
Naperville, IL 60563