Which Loan Type Is Best For You?

1. Mortgage terms. Mortgages are generally available at 15-, 20-, or 30-year terms. Typically the longer the term, the lower the monthly payment. However, you pay more interest overall if you borrow for a longer term.

2. Fixed rates. A fixed rate allows you to lock in a low rate as long as you hold the mortgage and, in general, is usually a good choice if interest rates are low.

3. Adjustable interest. Adjustable-rate mortgage is designed so that your loan’s interest rate will rise as market interest rates increase. ARMs usually offer a lower rate in the first years of the mortgage. ARMs also usually a limit as to how much the interest rate can be increased and how frequently they can be raised. These types of mortgages are a good choice when fixed interest rates are high or when you expect your income to grow significantly in the coming years.

4. Balloon mortgages. These mortgages offer very low interest rates for a short period of time — often three to seven years. Payments usually cover only the interest so the principal owed is not reduced. However, this type of loan may be a good choice if you think you will sell your home in a few years.

5. Government-backed loans. These loans are sponsored by agencies such as the Federal Housing Administration, see their website www.fha.gov, or the Department of Veterans Affairs, see their website www.va.gov. These programs offer special terms, including lower down payments or reduced interest rates to qualified buyers.

For specific questions please feel free to contact Renee Hodges or Zack Larichiuta at 843-763-1180. On weekends contact Renee at 843-270-6256. You can email Renee at renee.hodges@gbmail.com or go to website www.charlestonlending.com. Tell them “Carolina Joe” said to call.

As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston SC real estate needs or questions.

Sincerely,

"Carolina Joe" Idleman
http://www.carolinajoe.com