Interest rates on Fixed Rate Mortgages are still very low! If you plan to stay in your home for the long term, a consistent payment that never changes can help you prepare for your financial future. Plan your budget with a consistent mortgage payment at a low rate that will stay the same through the life of your loan.
COMMON TYPES OF FIXED RATE MORTGAGES
THE 15-YEAR MORTGAGE
You will pay less in interest. If you borrow $100,000 to purchase a home at a 4% interest rate, paying over a longer period of time will mean more interest on the money borrowed. So, a 15-year mortgage can significantly cut down on the interest that you pay. Add to that the lower interest rates that are often available for 15-year mortgages and you could have some big savings available.
Your monthly payment will likely be higher. Even with the lower interest rate, you will probably have a slightly higher payment with a 15-year mortgage. This happens because you are paying more towards principal from the beginning. But, you will be mortgage-free in half the time, which is no small feat.
THE 30-YEAR MORTGAGE
You will pay more in interest. Longer mortgage means more interest charged. This is how banks and other lenders make their money. They loan you, the borrower, money and collect their interest over the 15 or 30 years it takes you to pay them back.
Your monthly payment will likely be lower. Because you are spreading out your payments over a longer period of time, they will almost always be lower with a 30-year mortgage. If your monthly budget is tight, this may be a better way to go.
HOW IT WORKS
- Monthly payments are based on interest rate, principal loan amount, and amortized interest over 30 years. With a Fixed Rate Mortgage, your interest rate will never change, even if market rates increase!
- Your payment will not change throughout the life of the loan.
- Your actual payment will vary based on your situation and the current interest rates when you apply.
- Pay your mortgage off at any time without pre-payment penalties.
Have questions? Give us a call! One of our mortgage specialists would be happy to answer all of your questions.
Buying your first home is a very exciting step! Commonwealth Mortgage loan specialists are here to guide you through every step of the loan process.
Before finding your new home, we can help you get pre-qualified for free. We can also match you with a trusted real estate agent through our partner networks. Our variety of loan options allow you to buy your first home with little money down and we will work to ensure the loan payments meet your unique needs.
First time home buyers have a lot of questions and our loan specialists are always available to provide personal attention. They can explain the application process, provide tips to use during your home search, and make sure that you find the perfect home for your needs and budget.
Popular Loan Programs for First-Time Home Buyers:
30-Year Fixed Rate Mortgage
The most secure loan program. Lock in a low payment and sleep tight knowing that your rate will not change.
FHA Loan
Perfect for the buyer that wants to put less money down. Purchase your house with as little as 3.5% down!
VA Loan
An amazing deal for veterans and military members. Those who qualify for this loan can purchase with no down payment and no PMI. Find out today if you qualify!
Jumbo Homes Loans can make high-end home purchases possible. When a loan amount reaches a certain point, Jumbo and Super Jumbo Loans can offer high-end financing that a traditional loan can’t.
Over the past few years, some lenders have decreased their Jumbo Loan offerings and have made them harder to obtain. At Commonwealth Mortgage, we can get you a great rate on your Jumbo Loan.
With a jumbo mortgage, you’ll get great rates even on a large home purchase. With a choice between fixed or adjustable rates, our jumbo loans offer maximum flexibility for home financing for larger loans.
Have questions? Give us a call! One of our mortgage specialists would be happy to answer all of your questions.
An FHA Home Loan may get you into a home with a low down payment. An FHA loan provides a government-insured loan with flexible loan options. One of the biggest hurdles that first time homebuyers face is saving up for a sizable down payment on a home. Even experienced homeowners may need to plan for a long time for a new home purchase. Fortunately, FHA loans may help some buyers get into the home of their dreams with a lower down payment.
What is an FHA loan?
FHA loans are mortgages backed by the U.S. Federal Housing Administration. Lenders, such as banks and credit unions, that provide FHA loans provide funding for home purchases while requiring a lower down payment. Buyers may get into a new home with as little as 3.5% down.
Using conventional loans, a lower down payment requires the borrower to get private mortgage insurance. This special type of insurance protects the lender just in case the borrower is not able to pay. The cost of PMI is added to the monthly payment until the amount of the loan reaches 20%. FHA loans, on the other hand, do not require PMI because they are backed by the U.S. government. Additional scrutiny is often required during the loan application process using an FHA loan.
What is required for an FHA loan?
Many of the same documents are required for an FHA loan that any potential lender will want to see: employment history, appraisal, debt-to-income ration. A few additional stipulations are also attached to the FHA loan process. Buyers may have to bring 3.5% of the purchase price as a down payment, more if they have a credit score below 580. FHA loans are only available for the borrower’s primary residence.
Credit requirements may also be lower for FHA loans, given other factors demonstrate that the borrower is able to manage their money responsibly. Each lender looks at individual applications and may ask for additional documentation or explanations. They are often able to work with buyers with a lower credit score or shorter credit history than in other situations.
How FHA Loans Work
- Purchase your home with as little as 3.5% down payment (compared to 20% required on most loans).
- 30-, 25-, 20- and 15-year terms are all available with fixed rates.
- 5-year adjustable rate mortgage available.
- Pay your mortgage off at any time without pre-payment penalties.
Have questions? Give us a call! One of our mortgage specialists would be happy to answer all of your questions.
**CW Funding is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.
Are you a military service member or veteran looking to buy a home? As a benefit of your service, the Department of Veterans Affairs offers unique resources to help those with military experience purchase a home with a low or zero down payment. The VA Loan is a valuable tool that military members and veterans may use to pursue home ownership. VA Loans offer flexible options as either Fixed Rate or Adjustable Rate mortgages.
VA loans are available and provide the buyer the chance to finance 100% of the purchase price of the home. This means no down payment is required. It is important to note that buyers will still need to qualify for the loan. This means that lenders will look at their credit and ability to pay the mortgage. If you are in a troubling financial position, a lender may want to see you pay down debt or save up money before they are willing to give you the loan.
You may also be responsible for closing costs, such as recording the title or paying lawyers to draw up all paperwork. This is negotiable with the seller and something to discuss with your realtor before making an offer on a home.
The VA Loan process
A VA loan works the same as most other home purchases, with a buyer making a written offer to purchase a home under specific conditions (price, closing cost assistance, other contingencies), and then going through an approval process with a lender. The key difference with a VA loan is that the Department of Veterans Affairs requires that all homes purchased through this program meet certain habitability requirements. They will send out a home inspector and appraiser to make sure that the home is in good working order and is worth what you are paying.
This step may sometimes cause delays, especially if repairs are needed after the inspector looks around. Issues at the home do not necessarily mean that the buyer cannot use the VA loan, just that repairs will need to be done before the home purchase can be completed. The VA recently started offering a VA loan to be used for homes that need renovation on a limited basis.
How VA Loans Work
- Purchase your home with as little as 0% down payment.
- 30-, 25-, 20- and 15-year terms are all available with fixed rates.
- 5-year adjustable rate mortgage available.
- Jumbo VA loans available.
- VA Streamline Refinance with a reduced funding fee and flexible documentation requirements – available for veterans currently in VA loans.
- No monthly PMI (Private Mortgage Insurance).
- VA loans are governed by the U.S. Department of Veterans Affairs.
- Pay your mortgage off at any time without pre-payment penalties.
Have questions? Give us a call! One of our mortgage specialists would be happy to answer all of your questions.
**CW Funding is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.
Ready to reach financial independence through real estate? Whether you are looking for an investment property or a vacation home to spend relaxing days, CW Funding can bring the same level of personalized attention and service to all of your real estate purchases.
Your dream home might be within reach! Commonwealth Mortgage can help with investment property loans. Our prequalification process will ensure that you are ready to buy and we can help you find a real estate agent to meet your needs.
Mortgage Loan Programs for Vacation and Investment Homes
30-Year Loan
Take advantage of low rates by locking into a low payment with a traditional 30-year loan.
You may be able to qualify for owner-occupied financing with lower interest rates, based on your use of the home. Talk to a loan specialist to find out what programs offer the best terms for your situation.
15-Year Loan
Get the same security of a 30-year fixed rate mortgage, but pay your mortgage off in half the time. This means paying less in interest and owning your home sooner! This translates to greater monthly income from your investment.
Get Pre-Qualified
Great investment properties are out there but are often purchased by buyers “in the know” quickly. Increase your bargaining power by getting pre-qualified with us today.
Ready to reach financial independence through real estate? Whether you are looking for an investment property or a vacation home to spend relaxing days, CW Funding can bring the same level of personalized attention and service to all of your real estate purchases.
Your dream home might be within reach! CW Funding can help with investment property loans. Our prequalification process will ensure that you are ready to buy and we can help you find a real estate agent to meet your needs.
Mortgage Loan Programs for Vacation and Investment Homes
30-Year Loan
Take advantage of low rates by locking into a low payment with a traditional 30-year loan.
You may be able to qualify for owner-occupied financing with lower interest rates, based on your use of the home. Talk to a loan specialist to find out what programs offer the best terms for your situation.
15-Year Loan
Get the same security of a 30-year fixed rate mortgage, but pay your mortgage off in half the time. This means paying less in interest and owning your home sooner! This translates to greater monthly income from your investment.
Get Pre-Qualified
Great investment properties are out there but are often purchased by buyers “in the know” quickly. Increase your bargaining power by getting pre-qualified with us today.
