With an FHA home mortgage loan you have choices.
Not only are you getting great rates and low fees, you have a few mortgage alternatives to choose from:
Fixed Rate Mortgage (FRM): With this type of mortgage you will have the same payment each month for the life of your loan, unless there are changes in your homeowner’s insurance and property taxes. You will pay the same interest rate for the duration of your loan. These types of loans frequently have a prepayment penalty. This means that there will be an extra charge if you pay your loan off before the scheduled date. With an FHA home mortgage loan, however, there is no repayment penalty. FRMs are a good idea for people who plan to stay in their home for a long time.
Adjustable Rate Mortgage (ARM): With this type of home mortgage loan the interest rate is usually fixed for a specified period of time (often 3 or 5 years), after which it will fluctuate. The introductory rate is often lower than the comparable rate for a FRM, though once the rate begins to fluctuate it may become higher. ARMs are a good choice for people who plan on moving before the introductory period expires.
Reverse Mortgage: This type of home mortgage loan is available to people over 62 years of age. If you have a significant amount of equity built up in your home, you may be able to convert that equity into money you can use. For more details about reverse mortgages, call Homestar Financial.
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