Shepherdstown Home Loans
Choosing the right home loan can be difficult – each option has its own advantages and disadvantages, as well as interest rates and qualifications.
But don’t worry – Homespire Mortgage is here to help. Contact us for a free consultation. One of our personal loan consultants will guide you through the entire process, from home loan selection to closing.
A 30-year fixed rate mortgage in Shepherdstown, WV is a home loan with a fixed interest rate in a consistently specific amount. The amount stays the same for 30 years. However, the portion of your mortgage payment that goes toward the principal, in relation to the portion that is allotted toward the interest, will change during the course of the loan. The payments are spread over a 30-year period, and the interest payments comprise the bulk of the payments in the beginning stages of the loan. Toward the end of the loan’s term, the majority of the payments goes toward paying off the principal.
A 15-year home loan with a fixed rate is similar to a 30-year loan of the same type, in that you pay the same amount each month for 15 years. Like a 30-year fixed rate mortgage, the breakdown of the payments for this loan does shift during the term of the mortgage. Your payments are spread out over a 15-year period, with most of the payments going toward the interest for the first part of the term. During the final part of the term, the bulk of the payments will cover the principal.
An adjustable rate home loan is a mortgage with an initial period in which you pay a fixed interest rate. After that initial period, the loan is subject to rate adjustments that occur periodically. An ARM might seem like a risky prospect, since your payments may decrease or increase due to general changes in interest rates. However, getting an ARM might actually save you thousands of dollars if you choose it over a fixed rate loan.
An FHA loan is a mortgage, and it is insured by the Federal Housing Administration (FHA). This type of loan may be especially appealing because of the potentially low down payment. However, borrowers should be aware that they are required to pay premiums for mortgage insurance. The insurance serves to protect the lender in case a borrower defaults on the loan.
If you have a credit score of 580 or higher, you may qualify for this sort of mortgage by making a down payment as low as 3.5 percent. If your credit score is between 500 and 579, you may qualify with a 10 percent down payment. Keep in mind that the lower your credit score is, the higher your interest will be.
A USDA home loan does not require a down payment. Home buyers who qualify for these loans live in suburban and rural areas. The loans are supported by the United States Department of Agriculture (USDA).
The USDA supports an assortment of loans to assist people in the lower or average income brackets. USDA home loans are available in a variety of forms. Although the details of the loans vary, all of them feature low interest rates. In fact, some of the interest rates may be as affordable as one percent.
Houses known as “fixer-uppers” seem to be more popular than ever. Once you understand how much remodeling such a home costs, you may feel daunted. Even if you wish to proceed, you could find it difficult to get a loan for such a home, since many lenders might deem the home uninhabitable.
An FHA 203(K) is supported by the federal government. Its purpose is to enable home buyers to purchase homes that require much repair work. It also enables a person to buy an older home.