Understanding Your Finance Options

When shopping for a mortgage it’s important to consider all of your options carefully. The process can seem complex, but you can feel confident knowing our experienced Loan Officers will work closely with you to determine what type of home financing will fit your individual needs. Here is an overview of some of the most popular mortgage programs:

Conventional

Features

  • Variety of fixed rate and adjustable rate options
  • Less than 20% down requires mortgage insurance
  • Available for primary residences, second homes and investment properties

For more information about Conventional Mortgages, check out the Toll Talks blog post –
“Choosing the Right Mortgage-Part 1”.

FHA

Features

  • As low as 3.5% down
  • Flexible qualifying guidelines
  • Fixed rate and adjustable rate options
  • May use gift funds for the down payment or closing costs (min. 3.5% from buyer’s own funds)
  • Upfront mortgage insurance required (paid at closing or financed) in addition to monthly premium
  • Primary residence only

For more information about Conventional Mortgages, check out the Toll Talks blog post –
“Choosing the Right Mortgage-Part 1”.

VA

Features

  • No down payment option
  • Available for active duty, veterans, reservists and surviving spouses
  • Fixed rate and adjustable rate options
  • Funds allowed for down payment or closing costs
  • One-time Funding Fee required (unless exempt) and no monthly mortgage insurance
  • Primary residence only
Fixed-Rate Mortgages

Features

  • Available on Conventional, FHA and VA
  • Terms ranging from 10 to 30 years
  • The rate is generally lower as the term decreases, but payments are higher since the loan is paid down more quickly
  • Good option if you plan on staying in the house for an extended period of time

For more information about Fixed-Rate Mortgages check out the Toll Talks blog post,
“Choosing the Right Mortgage- Part 2.”

Adjustable-Rate Mortgages

Features

  • Available on FHA and VA.
  • Adjustable-Rate Mortgages (ARMs) typically have a lower initial interest rate than a fixed-rate mortgage
  • Rate caps limit the maximum amount your rate can change at each adjustment over the life of the loan

Good option if you don’t plan on staying in the home for many years or plan on refinancing.

For more information about ARMs check out the Toll Talks blog post,
“Choosing the Right Mortgage- Part 2.”