How much home can you afford? What type of mortgage is right for you? Our Accredited Buyer Representatives® at The Estridge Group can help you find the right mortgage for your new home in Maryland, Washington D.C. or Northern Virginia. Here’s a basic guideline to help you get started!
Your buying power depends on your income, credit score, monthly expenses, funds for down payment, and the mortgage interest rate. Depending on your situation, certain types of mortgages may offer a better fit for your needs.
FHA-backed mortgages allow you to finance a home with as little as 3.5% down. Popular with first-time buyers, these mortgages have competitive interest rates and are widely available. Loan amount limits apply, varying by state and county. There is also a mortgage insurance premium added to your payments, which protects the lender in case of default. Contact us for more information, and for referral to a reputable mortgage lender.
U.S. military veterans and service personnel can take advantage of VA mortgages. There is no down payment requirement, and there is no mortgage insurance. While there is no limit on the loan amount a veteran may borrow, VA mortgages cap the loan amount guaranty provided to lenders. VA loans generally recognize market norms in high-priced areas, but the guaranty amount varies by state and county. Contact us for more information, and for referral to a reputable mortgage lender.
Jumbo mortgages allow you to finance more expensive homes that would exceed conforming loan limits for the area. These loans are generally structured for high-income borrowers with strong credit. Down payment requirements start at 25% and may be higher depending on the circumstances. Jumbo mortgage loans offer competitive interest rates and are accessible to qualified borrowers in high-priced markets. Contact us for more information, and for referral to a reputable mortgage lender.
Fixed-rate mortgages suit buyers who intend to stay in their home long-term. With a fixed-rate mortgage, the amount of interest you pay never changes during the life of the loan, giving you predictable mortgage payments. Today’s low rates make 15-year, fixed-rate loans perfect for those who wish to pay off their homes and live mortgage-free! If you’d rather have a smaller payment, a 30-year, fixed-rate mortgage is easy on the budget.
An adjustable-rate mortgage (ARM) has the advantage of a very low interest rate during the initial term of the loan. After the initial term expires, usually in 3 to 5 years, the rate of interest is re-calculated using a published financial index. Adjustable rate loans work best for relocation buyers who are frequently transferred, or other short-term ownership situations. ARM loans allow you to maximize your mortgage leverage, but you must have the ability to tolerate potential payment increases.