Understanding Today's Mortgage Programs
Whether you want to buy or build, refinance and/or renovate; Nichols & Co. Mortgage Advisors has the right lender with the right program for you. We've got the experience and expertise to take your loan across the finish line.
For the vast majority of our clients financing their own home, we recommend and provide affordable, equity-building and future-proof fixed-rate mortgages featuring monthly principal and interest payments which never change during the loan’s lifetime. With the current years-long run of low interest rates, our clients have been building substantial equity in these mortgages and will continue to do so long into the future.
This is opposed to adjustable-rate mortgages with interest payments which shift during the loan’s term, depending on current market conditions. Typically, these loans carry a fixed-interest initial period during which you may refinance the loan for a more predictable fixed-rate mortgage, perhaps with a better loan-to-value ratio than you had at the time of purchase.
Other programs in the marketplace may feature interest-only payments or graduated payments which increase during the term of the loan at a predefined schedule. Both of these arrangements can make it very difficult to build equity, thus we never really recommend these since equity is often the very reason a borrower would want to own a home vs. rent.
If you're looking to borrow more than $548,250 in 2021 ($625,000 in 2022), you'll be looking for a jumbo loan. When shopping and comparing rates, make sure you don't miss this detail.
In addition, you should quickly glance over and see if any of these federal goverment loan programs might apply to you:
- FHA home loans are mortgages which are insured by the Federal Housing Administration (FHA), allowing borrowers to get low mortgage rates with a minimal down payment.
- VA loans are mortgages guaranteed by the Department of Veteran Affairs. These loans offer military veterans exceptional benefits, including low interest rates and no ...
- A USDA loan might be useful if you're looking to buy a home in a rural or suburban area with no down payment and minimal investment.
Not sure where to start? Give us a call at 314-789-8908 or schedule a consultation today.