Home purchase mortgage loan
Home purchase mortgage loans are those mortgage loans that are provided for the purpose of purchasing home. These loans are very important and governments of many nations have accorded top priority to home purchase mortgage loans as these allow residents to own a residential and dwelling unit. It is important to understand here that helping people own their homes is one of main objective of governments.
Many times, special offers with respect to interest rates etc are made by the financial institutions for attracting more and more number of people. There are many types of home purchase mortgage loans available and a person can choose one as per his requirements. First time home buyer programs are also available. Apart from these, government home purchase programs are also there. Let us discuss different types of loans for understanding more.
Fixed rate home purchase mortgage loans are among the most important programs available. As the term suggests too, these loans are provided at fixed interest rates and interest rate remain same throughout the tenure of loan. There are many types of options available under fixed rate home purchase mortgage loans. For example, a person can go for 30 year or 15 year fixed rate loan programs. These loans are provided for period of 30 years and 15 years respectively. Interest rates attached with 30 year fixed rate loans are higher than the interest rate attached with 15 year fixed rate loans.
However, amount of monthly installment is lower in case of 30 year loans. Fixed rate loan programs are the best ones to avail when interest rate drops to low levels. In present times, interest rates have become very low and thus, it is beneficial if a person goes for fixed rate home purchase mortgage loans. Other type of program available is adjustable rate home purchase mortgage loans. In these loans, interest rate is fixed for an initial term and then, it is adjusted as per the interest rates prevailing in the market. Various types of adjustable rate loan programs available are 5/1, 7/1, 10/1 etc.
Other important type of home purchase mortgage loan program available is interest only home loans. In these loan programs, a person is required to pay interest only for a definite period of time and principal amount repayment starts after a certain amount. Apart from above, bad credit home loan programs, 100% home loans etc are other programs available. Bad credit home purchase mortgage loans are offered to people suffering from bad credit and interest rates attached with these loans are higher than the interest rates attached with home loans provided to people with good or excellent credit. In fact, credit history or rating of a person plays a very important role in deciding the interest rates and other terms and conditions attached with loans. In 100% home loans, a person is not required to provide any down payment and lender provides 100% of home purchase value.
Interest rates attached with home purchase mortgage loans differ from one lender to another and thus, it is very necessary that a person compares offers of all lenders so as to choose the lowest rate programs.
One loan program that needs mentioning here is FHA Home Loan Program. FHA loans are considered as one of best options if a person is not able to make a large down payment. These loans are administered by FHA or Federal Housing Administration. Underwriting guidelines attached with these loans are also very liberal. In some cases, down payment up to 3% are also accepted. No cash reserves are required. Debt to income ratios are also very liberal and even a person with 35/45 ration can also get home purchase mortgage loan. However, loans are provided with respect to owner occupied properties only and thus, no investor loans are provided by FHA.
Home units that are eligible to get finance under FHA loan program include single family units, FHA approved condos, etc. A person has the choice of 30 year and 15 year fixed loan programs, buy down programs and adjustable rate programs. As far as qualifications are concerned, there is no limit with respect to age of buyer. Similarly, there are no restrictions with respect to income or sales. However, borrowers are required to have a valid picture ID and social security number. Only one maximum ratio FHA loan program can be availed at a time. If a person wishes, he can also add co-borrowers on the loan.
Online mortgage financing institutions have emerged as one of most important home purchase mortgage loan lenders in United States. These allow a person to get pre-qualified in a very fast manner. Through online search, a person can easily find the cheapest lender in the area. If current national average rates are seen, it is found that 30 year fixed mortgages are offered at 5.41% and 15 year fixed rate mortgages are offered at 5.11%. 5/1 ARM loans are offered at 5.77% while 30 year fixed jumbo mortgage loans are offered at 7.01%. 5/1 jumbo ARM loans are offered at 5.98%.
Finding a lender for home purchase mortgage loans is easy. For example, Secure Capital Mortgage is one of leading providers of above types of loans in U.S. It offers first time home buyer programs as well as other home loans. It specializes in FHA home loan programs. Loan process can be started by filling the no obligation, free and hassle free application. A person can easily call this lender at 818-920-1600 for getting more information.
Similarly, homeloanslocal.com is another source offering home purchase mortgage loans in United States. Services are offered across the nation. It helps a person in getting cheapest home loans.
Ameristar Mortgage is also one of leading providers of mortgage programs in United States. It has been providing services since 1988 and provides sound advice on various types of home purchase mortgage loans available. A person can easily call at 312-793-3000 for getting more information.
Mortgageloan.com is another source that can help a person in getting best home purchase mortgage loan program. It has been providing services since 1995 and has helped many people in becoming homeowner through a network of mortgage brokers and lending institutions.
Other Articles
