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12.30.2020 / Home Buying Tips

Choosing the Right Loan

Your Journey Starts Here

Whether you’re a first-time home buyer or a seasoned homeowner, speaking with a trusted mortgage professional from your community can prove invaluable when it comes to selecting the best mortgage option from the wide array of programs available.

Our Gateway Loan Officers are experienced in guiding prospective borrowers through the sea of financing options and helping to identify those that are best to meet your specific needs.

Purchase, Refinance or Renovate?

Are you seeking to purchase a home, or refinance the home you’re already in? Perhaps you want to renovate a fixer upper? Or maybe you want to finance repairs to your current home and roll them into your mortgage? There are mortgage options specifically designed to support each of these scenarios.

Fixed Rate Vs. Adjustable Rate Mortgage?

If you plan to hold on to your property for a long period of time a fixed rate loan might be your best bet. With a fixed rate, your monthly payments will stay the same over the life of the loan, and you’ll be able to lock in your rate for the full period.

If you plan to sell or refinance your home in the next few years, an adjustable rate loan might look more appealing. With an ARM, your initial interest rate will be set below the market rate for a comparable fixed-rate loan — but only for a set amount of time. Following this period, your loan’s interest rate will change based on the terms set forth in your final loan closing documents.

Term: Length of Your Loan

Many borrowers choose a 30-year mortgage for the lower monthly payments. But a 15-year mortgage can save you thousands of dollars in interest over the course of your loan. We’ll suggest looking at your long-term goals when making this decision. When do you plan to retire? Will you be helping your children through college and hope to have your mortgage paid off before that time?

Try our Comparing Mortgage Terms calculator to help you think through the costs.

Government Loan Programs

Our Gateway Loan Officer can walk you through the various government loan options, like FHAVA or USDA. These programs offer a number of distinct features and benefits, from lower down payment options to looser credit requirements (dependent on the loan option). Plus, lenders can often afford to offer more competitive terms and rates with the knowledge that your loan is backed by the government.

Get the Expertise You Need

At Gateway, you can count on highly experienced loan officers who are experts at helping to identify the best mortgage options for you. Find a Mortgage Center near you today.

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