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| Finding
The Right Loan |
Selecting the right mortgage is central to the homebuying
process–that's why it's so important to understand
your options. You'll need to consider two things at the
outset: which loan type best meets your homebuying needs,
and which loan term offers the ideal repayment schedule.
Although each individual home financing package has its
own variety of features, the concept of a mortgage is really
quite simple: a mortgage is a loan made to help you finance
a home. Your lender advances you a certain amount of money,
which you repay over a specified period.
| Loan
Types |
| Most
home loans fall into one of two general categories:
fixed-rate mortgages and adjustable-rate mortgages (ARMs).
You'll also encounter other basic loan types uch as
government loans and flexible credit solutions programs.
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Fixed-rate
mortgages have interest rates that stay the
same for the entire life of the loan.
You will have predictable monthly payments throughout
the life of the loan.
You'll be protected from rising rates, so your principal
and interest payments can never increase, no matter
how high interest rates rise. |
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Adjustable-rate
mortgages have interest rates that adjust periodically
based on market conditions.
The initial rate is fixed for an introductory period
(usually one to ten years), and is typically lower than
for a fixed-rate mortgage. After that, the rate adjusts
annually based on a market index, but can't go above
a predetermined adjustment cap. |
| Because
of the lower initial rate, some borrowers may be eligible
for a larger loan amount with an ARM than with a fixed-rate
mortgage. Find the right combination of loan features
to support your financial goals. |
| Government
loans are offered by conventional lenders like MidAmerican
Homes Services Mortgage, but insured by the federal
government. They come in two types: FHA and VA. |
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FHA
loans are backed by the Federal Housing Administration,
and are designed to assist low-to-moderate income homebuyers
by offering low down payment requirements and flexible
qualifying guidelines. |
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VA
loans are backed by the Department of Veterans
Affairs (formerly the Veterans Administration), and
are available to qualified veterans and active-duty
military personnel and their spouses. They offer many
of the same features as FHA loans. |
| Flexible
credit solutions programs are designed for borrowers
with less-than-perfect credit histories, excessive debt,
or previous bankruptcy, foreclosure or tax delinquency.
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| Loan
Terms |
| The
“term” of a loan is the period of time you
will spend repaying it. The most common loan term is
thirty years, but you have other options as well, including
twenty, fifteen, or ten years. Whether you'd be better
off with a longer loan term or a shorter one depends
on a number of factors, most notably your monthly income
and long-term financial goals. |
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Longer
mortgage terms offer lower monthly payments,
and are a good option if you're on a tight budget or
would prefer to direct your monthly cash flow toward
other investments or expenses. |
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Shorter
mortgage terms mean higher monthly payments,
but allow you to repay the loan faster and save money
on interest. |
| Whatever
loan type or term you choose, MidAmerican Home Services
Mortgage offers a wide variety of product options to
meet your unique homebuying needs. Our home mortgage
consultants can help you find the right combination
of loan features to support your financial goals. Contact
us to get started today. |
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MidAmerican Home Services Mortgage has a broad array of products
that can fit the needs of almost any consumer.
Fixed-rate and adjustable-rate mortgages, VA, FHA, no down
payment and much, much more!
We explain each product clearly and help you decide which
one is the right one for you.
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| Click
the button to check out our great line of products! |
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Click
the button to apply
online for a home mortgage
from MidAmerican Home Services Mortgage.
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| Questions?
Comments?
Use this quick, easy way
to contact us or call us at
1-800-247-2430 |
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| Monday-Friday
8:00AM-5:00PM CST |
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Equal Housing Lender