Moe Mojahed
Designated Broker
Arizona Home Source Realty LLC.
Direct: 602.390.7777
Soraya Mojahed
Real Estate Consultant
602.980.6161
 
 

Buyer Articles
• Advice for First-Time Buyers         
• 
Negotiating with Sellers     
• 
Types of Mortgages     
• 
Getting the Best Mortgage Rates
• 
Opening Escrow


Types of Mortgages

    Fortunately for buyers, there are a variety of mortgages to choose from. It is in your best interest to investigate each of them to determine which is the best for your situation. You probably won't qualify for all of them. In fact, you may only qualify for one. But if you do qualify for more than one, you may save yourself money in the long run if you do your homework before signing on the dotted line.

• Fixed-Rate Mortgages
            
• FHA and VA Loan

Fixed Rate Conventional Mortgages

    Most home loans are for a period of 30 years, if you want a payment you can count on for a period of time, a fixed rate mortgage may be what works best for you. Once your loan amount and interest rate are calculated and locked in, a fixed rate mortgage will guarantee that you will have the same payment over the life of the loan. Making extra payments to principal will allow you to pay your loan off sooner.

    The following are the advantages and disadvantages of the varying lengths and terms of fixed-rate mortgages:
 
        15-Year Fixed-Rate:
o Pay off the loan in half the time of a 30-year loan.
o Equity builds up more quickly than in a 30-year loan.
o Payments are higher (which may be a problem if you lose your job or become unable to work).

        20-Year Fixed-Rate:
o Pay off the loan in 2/3 the time of a 30-year loan.             
o The overall interest paid is considerably less than for a 30-year loan. 
  
        30-Year Fixed-Rate:     
o The most common choice, especially for first-time homebuyers, as it's the easiest of the fixed-rate loans to qualify for.             
o Monthly payments are lower than for 15-year and 20-year loans. This can prove especially helpful if you do not have a lot of "padding" between the amount you can afford to spend and the monthly payment for your desired property. 
o More desirable if you plan on staying in the same home for years, since equity builds more slowly than for shorter-term loans.             
o For income tax purposes, this term provides the maximum interest deduction.
    
Government Loans

    Another mortgage option available to some people is a government loan, providing that you meet the qualifications for these loans.
o VA Loans: You must be a Veteran with Honorable discharge to qualify for this type of loan.      
o FHA Loans: The Federal Housing Association offers loans to lower-income Americans. Look for the phrase "FHA approved" when looking at ads for homes.

  Buyer Articles
• Advice for First-Time Buyers         
• 
Negotiating with Sellers     
• 
Types of Mortgages      
• 
Getting the Best Mortgage Rates
• 
Opening Escrow