Home loan options in Draper, Utah. Here's your guide to mortgages in Draper.
Draper's most popular mortgage option is called a Conventional Fixed Rate Mortgage. Conventional Fixed Rate Mortgages (or "FRM" for short) offer constant interest rate for the entire life of the loan and monthly payments remain constant. For the most part, a down payment of 20% is required, but that is not always the case. The life of this mortgage ranges 10-40 years.
The opposite of a Fixed Rate Mortgage, Adjustable Rate Mortgages (ARM) are not fixed. It's only fitting that they call it an 'adjustable rate'. Depending on the market, your interest rate could change. It is recalculated on a yearly basis. Since your interest rate changes, your monthly payment changes, too. Unless the market does something crazy, your interest rate is lower than what you'd get for a Fixed Rate Mortgage. If you'd like to know more about ARM click here.
The 3rd most popular loan is called an FHA Mortgage Loan. These loans are private loans that the federal government has insured and stamped for approval. These are for those who can't pay that 20% down that is generally required by the FRM loan. Instead, you pay 3% down and pay higher monthly payments.
The above mentioned mortgages are the most popular options for a Draper home. Just because these 3 are the most popular, doesn't mean there aren't other options that may work better for you. If you want to read more about any of the above loans or the various other options including refinancing go to this address: www.spencerstott.com/loan-programs/.
Trying to figure out which mortgage is right for you isn't easy. Here's a tip to help you decide which mortgage fits your financing needs. The best thing you can do is talk with your trusted Draper Mortgage lender. Visit our website spencerstott.com or call us and we can help you get on your way to deciding which mortgage is right for you.