Before jumping into purchasing a mortgage, it’s best to understand all the types. Buying a home is perhaps the biggest investment you’ll ever make, which is why you want to make super sure that you’re choosing the best plan for you. There are many factors that make a mortgage better for you than others. For example, some loans in Pompano Beach come with higher interest rates, while others come with higher down payments. Some require better credit scores than others. Knowing this information up front will help you to make a more educated decision about how you want to pay off your home.  

The Basic Mortgage Loans in Pompano Beach  

Adjustable Rate Loans  

Adjustable rate loans, otherwise known as ARMs, are quite common. This is a rate that fluctuates over time. As the economy changes, as does the rate. While this can feel unstable for some, others appreciate that the down payment is usually lower. The interest rate also remains the same for five years, but afterwards, that rate is subject to change.  

Fixed-Rate Loans  

For those that find adjustable rate loans too unsteady, there is a fixed-rate option. Generally, this is the popular choice, as people like to know what their payments will be. Another word for fixed-rate loans is conventional loans. The monthly payments won’t change during the duration of the loan, but the down payment can be higher.  

Interest-Only Loans  

An interest-only loan is less popular but offers a unique plan. The homeowner will have the option for five to ten years to pay their full monthly payments, or they can choose to pay only their interest. While this extends the payment of the overall mortgage, it is helpful for those who have less dependable forms of income. In a sticky situation, the homeowner can choose only to pay the interest and hold off on the full monthly amount. Alternatively, if they receive a bonus, they can choose to pay more. Many people like the flexibility this option gives.  

FHA Loans/VA Loans 

Guaranteed by the Federal Housing Administration, these loans have smaller down payments and are often recommended for those who are just purchasing their first house. It helps protect lenders against a person who may or may not be able to pay their loans back. VA loans are also backed by the government. The Department of Veteran Affairs offers this mortgage option as a way for U.S veterans to buy homes. It does not require a down payment.  

If you have questions about mortgage loans in Pompano Beach, you’re not alone. Many individuals think that loans are quite complicated. Fortunately, with the experts at Ace Mortgage Loan Corporation, you can ask all the questions you need. In business since 1996, we have plenty of professionalism and experience when it comes to working with our clients. We work with purchasing, financing, investments, cash outs, commercial, and more! Call us today at 954-777-4774. We can’t wait to help you secure your first home! 

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