Top 5 mortgage options available for real estate

Jan
31

Top 5 mortgage options avaliable for real estate There are so many different mortgage options out there these days that one could get lost in the sea of information. Now that you have decided to either buy a new home or refinance the one that you have, let’s take a look at your options.

First we need to figure out what type of loan you need. Are you planning on staying there for a while and want to build up equity? Or are you looking to flip your new property and make a nice profit? Depending on the outcome you are looking for, you will need one of several types of mortgages. Let’s take a look at the top 5 most popular mortgage options out there and decide what type will best fit your needs.

A 15 to 30 year mortgage - This is by far the most common of all the mortgage options. The fixed length mortgage usually has a fixed mortgage rate to go along with it.
An ARM mortgage – The Adjustable Rate Mortgage does just that. It adjusts whenever the APR does. A convertible ARM gives you the option to lock into a fixed rate after a certain time.
Interest only mortgage – With this mortgage loan, you have the option of just paying the interest which lowers your monthly payment.
Balloon mortgage – The balloon mortgage allows you to pay little to nothing but requires the entire amount at a given time. This is a short term option.
Government or Conforming Loan – This type of loan is for those who might have a hard time qualifying for a conventional type of loan.

There are pros and cons to all the mortgage options. It will depend on you to decide what type of loan best fits your investment. And let’s face facts, you are fixing to make a huge investment no matter what your reason behind purchasing the real estate property. So join us next week for the first part in our mortgage series when we will look at the fixed rate mortgage.

Stop by Best Rate Mortgage House for all your mortgage needs and let us help you figure out exactly what you need.