Anytime you are buying a home, you will need some form of financing to make the purchase. The majority of transactions use various financing options in completing the sale of the property. Last month, just 3% of all transactions were closed using cash transactions for all home sales in Coral Springs.
The key to buying a home successfully requires knowing which home mortgage in Coral Springs works best for you.
The low interest rates make things attractive and you don’t want to get caught in the trap of buying a home with a mortgage you don’t know much about.
During the Financial Crisis, homebuyers purchased when interest rates were low and did not realize that increases could lead to higher mortgage payments.
Knowing about the various mortgages makes you more knowledgeable on the risks and rewards to find the right one for you.
Keep reading to learn more.
The Conventional Mortgage
A conventional home mortgage in Coral Springs is when you can go down to a financial institution and receive approval quickly. You have good credit and can afford to make a down payment of 20% to purchase the home. These types of mortgages provide numerous benefits to include
- Lower interest rates
- You can buy your primary residence or second properties such as vacation homes or for investments with this mortgage.
The disadvantages of conventional mortgage include
- You must have a credit score of at least 640.
- You must have low amounts of debt versus your household income.
- The process can be lengthy to verify assets, income, and employment.
Conventional mortgages are ideal for homebuyers with stability in their employment, income, and who can afford a higher down payment.
Ace Mortgage Loan Corporation can help you determine which mortgage is right for you with our Financial Planner. You can learn about what mortgage is best for your situation to help you purchase your dream home.
Government-Backed Mortgages
The US government is not a mortgage lender but plays a part in helping you to buy a home through different programs to include
- FHA mortgages: The FHA helps buyers to purchase a home that might not have a down payment or strong credit. You must have a credit score of at least 580 and a 3.5% down payment to receive the loan. Those with credit scores of 500 can qualify, but they will have to make a 10% down payment.
- VA mortgages: The VA provides low-interest mortgages to veterans that served in the military and their families. You don’t have to make a down payment, and the closing costs are low or covered by the seller. You will have to pay a small funding fee to cover the costs of running the program and reduce the burden on the federal government.
- USDA mortgages: USDA mortgages allow low-income homebuyers to purchase in rural counties, cities, and towns. You must be purchasing in authorized areas, and meet specific guidelines for income to be eligible. In some cases, the USDA does not require a down payment for borrowers with low income.
The advantages of using government-backed mortgages include
- You don’t need perfect credit or a big down payment to qualify.
- First-time homebuyers are eligible.
The drawbacks of government mortgages are
- You will have to purchase mortgage insurance to receive the loans.
- You might have higher costs for borrowing versus conventional options.
Ace Mortgage Loan Corporation can help you find the perfect government mortgage to purchase your home. You don’t need to have perfect credit and may qualify for down payments requiring little or no money. We are your premier provider of mortgage services in Coral Springs and are ready to help you.
Fixed Versus Adjustable Mortgages
A fixed-rate mortgage keeps your house payment the same over the term of the loan such as 15, 20, and 30 years.
An adjustable-rate mortgage can cause your house payment to go up or down depending on the movements in interest rates.
- You should consider the length of time you plan on staying in the home and if you can afford changes in your mortgage payments.
- If you plan on staying for the term of the loan, a fixed mortgage may be right for you.
- If you plan on leaving in a few years, an adjustable-rate mortgage could be the best option to save you thousands of dollars in interest.
Contact Us Today
At Ace Home Loan Corporation, we can explain the benefits and drawbacks of all the mortgage services in Coral Springs. Call us today at 954-945-7841 and put our 25 years of experience to work for you. We are located on West Sample Road in Coral Springs, across from Laspada’s Original Hoagies.