Buying a house can sometimes be confusing. There are so many options when it comes to mortgage loans in Pompano Beach. Every homebuyer needs one to purchase property. But how do you know which mortgage loan is best for you? It’s an important decision which requires significant thought and research. To help make things easier, it’s best to get advice from a qualified professional at a mortgage company in Pompano Beach which can properly analyze your personal situation and formulate the best mortgage loan to fit your individual needs.
One of the most common Pompano Beach mortgage loans is the fixed-rate loan. Otherwise known as a convention loan, a fixed-rate loan is usually a 30 year loan. This means the homeowner will pay the same interest rate, principal and interest payment during the life of the loan. Most people choose a fixed-rate mortgage loan because it offers the most security for those who plan to live at their home for a long period of time. To receive a fixed-rate mortgage, a homebuyer must provide complete documentation including W-2s, pay stubs, bank statements along with explanations for any bad accounts.
Another popular type of mortgage is the Federal Housing Authority or FHA. Passed originally by Congress in 1943, FHA loans are made by banks and private lenders for home buying or building. Many homebuyers opt for an FHA because of its lower down payment requirements and rates. An FHA allows buyers to receive a higher loan-value ratio than a fixed-rate loan. FHA’s are generally easier to qualify. Although it requires much of the same documentation as the fixed rate loan, FHA’s don’t place a strong emphasis on credit ratings and trade lines. Most of the terms and limits are the same as a fixed-rate mortgage. However, a FHA offers a reduced rate for mortgage insurance.
Most buyers are looking to get the lowest possible interest rate. But as we all know, interest rates can fluctuate. That’s why many opt for an adjustable rate mortgage or ARM. Most people who choose an adjustable rate mortgage are looking to start off with the smallest interest rate possible with the expectation it will eventually increase. An adjustable rate mortgage allows buyers to pay the principal in one lump sum at the end of the loan’s term. It’s important to keep in mind there are several types of adjustable rate mortgages with different adjustment intervals. This type of loan is usually recommended for those who don’t plan to stay at their home for long.
To determine which loans in Pompano Beach are best for you, visit the professionals at Ace Mortgage Loan Corp. Their licensed mortgage experts have been helping buyers realize their dream of home ownership since 1996. Over the course the time, they’ve seen many changes in South Florida’s real estate market. But one thing remains the same. You’ll get sound advice from those who understand what it takes to buy a home in Pompano Beach. To learn more, call their mortgage professionals today.