Popular Home Loan Options Reviewed By LoanLove.com

Loan Love’s new guide to loan types helps borrowers make informed decisions concerning their mortgages.

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San Diego, CA (PRWEB) November 30, 2013

LoanLove.com is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. The experts at Loan Love are consistently finding new ways to aid their readers with their mortgage loan issues by providing them with helpful home loan planning tips and strategies. One of the websites most recent guides focuses on popular home loan options and gives information that can help borrowers to make informed decisions regarded their mortgages.

The guide, which is titled “The 7 Most Popular Loan Options Made Simple” explains:

“If you’re looking to buy or refinance a home, today you have more loan options than ever. With a wide selection of fixed-rate loans, adjustable-rate mortgages (ARMs) as well as term lengths, down payment requirements and interest rates, just about any consumer can find a mortgage that suits their budget and both their short-term and long-term financial goals. Here’s a quick rundown of seven of today’s most popular loan types with links to more information so you can choose the loan that’s best for your needs”

First the article gives some information about 30-year fixed mortgages. This option is a favorite because of the stability of the loan and the predictability of the payments. The article states: “The locked-in monthly payments mean there are no adjustment surprises and consumers can confidently plan their monthly budgets and long-term goals. But their longer, 30-year term also means you’ll end up paying a lot in interest over the life of the loan.”

Loan Love explains that 15-year fixed rate mortgages have many of the same advantages of 30 year mortgages, except that the shorter term means lower long term costs. However, these loans also have higher monthly payments, so those that choose this option need to be sure that they can handle this amount for the next fifteen years.

5/1 ARMs (adjustable rate mortgages) are great for those who plan to move or refinance within the next few years. The low starting payments make it a budget friendly choice for those in this situation. However, they will need to either sell their home or refinance it within five years if they wish to avoid the high annual adjustments to their rate, or else be sure that they can handle the higher monthly payments.

FHA loans are great for those who have lower incomes or who are purchasing their first home. Qualifying for an FHA loan enables the borrower to benefit from a much lower down payment; typically as low as 3.5%. Some buyers may even be able to roll home improvement costs into their loan through the FHA’s 203k program.

VA loans are almost always the best option for veterans and active service members who are eligible for them. The zero down payment and the fact that the seller can be made to pay closing costs are a big bonus that VA loan qualifiers will not want to pass up.

Concerning Jumbo Loans, the article says: “If you want to buy a home that exceeds the limits set for conforming loans – from $417,000 to $625,000 for non-FHA loans and $729,750 for FHA mortgages – the jumbo mortgage is the mortgage you’ll need; in fact, jumbos are the only mortgages available for high-value luxury home purchases. Be prepared for higher payments and more stringent income and credit requirements to make your dream home a reality.”

Lastly, reverse mortgages can be the best option for seniors who want to continue receiving the tax advantages of having a mortgage, while also being able to tap into their home’s existing equity. This can be a great home loan option for those who are living on retirement funds and need to stretch their income in order to maintain their lifestyles, or for those who simply want extra cash to enjoy their golden years.

For more information on each of these seven popular loan options, please read the full guide at LoanLove.com.


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