Southern Maryland Mortgages
Are you in the market to purchase a Southern Maryland home? Have you considered which mortgage you wish to use in your home buying experience? There are several different types of Southern Maryland mortgages you can choose from. Deciding which mortgage works for your specific financial situation will help determine your monthly mortgage payment as well as the percentage rate you are looking to pay.
Probably the most common type of Southern Maryland mortgages are the adjustable rate mortgages. These loans will typically get you into a home at a lower interest rate than most others. However, just as the name states, this rate does not last. Depending on the market conditions at the time of review, they will go up or down over the course of your home mortgage loan. That means that your monthly mortgage payment will often change and, usually, go up over time.
With interest rates at such low levels, many Southern Maryland home buyers are turning to a fixed rate mortgage loan. Unlike the adjustable rate loans, an FRM stays the exact same rate throughout the life of the loan. Whatever payment you start off with in month one will continue through until you pay it off or sell it without any variances. The only thing that may change is your insurance payment and property taxes.
FHA and VA loans are government insured mortgage loans. With an FHA loan, the lender will be paid by the government if the buyer defaults on the loan. A VA loan is available to anyone who has honorably served in the military and their families. These loans typically require little or no money for a down payment but also tend to have more hurdles to jump through than other loans because of their strong beauracratic influence.
On the other hand, a conventional mortgage is a private loan that is not backed by the government. Most conventional loans require 5-20% down. They also tend to take less time to process than an FHA or VA loan. Because of the higher down payment requirement, Southern Maryland homes purchased with a conventional mortgage typically build up equity faster than an FHA or VA loan.
Southern Maryland homes that are more than $417,000 typically require a jumbo loan. These loans are for higher priced properties. Due to their higher risk factor, they tend to garner higher interest rates than conventional loans.
Always consult your mortgage lender or financial adviser about which Southern Maryland mortgages are right for your financial situation. There are several different types of specialty loans that may fit your particular needs and are not discussed here. When you are ready to start looking for your next Southern Maryland home, please contact me.
Featured Southern Maryland Home for Sale
For more information on this and other homes for sale in the Southern Maryland area, please visit my Featured Properties page.
Originally posted on my Southern Maryland real estate blog here: http://bonnieaugostino.info/southern-maryland-mortgages/.