Purchase

Conventional Fixed Rate Loans:

Conventional home loans are mortgages offered by non-government sponsored lenders. These loan types may include:
  • Fixed Rate home Loans
  • Balloon Mortgages and Pledge Asset Loans
  • Jumbo / Construction Loans
  • Reverse Mortgage

Payments on fixed-rate, fully amortizing loans are calculated so that the home loan is paid in full at the end of the term. In the early amortization period of the mortgage, a large percentage of the monthly payment pays the interest on the loan. As the mortgage is paid down, more of the monthly payment is applied toward the principal.

30 Year Fixed Rate 30 Year Fixed Rate

A 30 year fixed rate mortgage is the most popular type of loan when borrowers are able to lock into a low fixed rate that does not change.

Benefits
  • Lower monthly payments than a 15 year fixed rate mortgage
  • Interest rate does not go up
  • Payment does not go up, it stays the same for 30 years
  • Fixed Rate Loans
  • Balloon Mortgages and Pledge Asset Loans
  • Jumbo / Construction Loans
  • Reverse Mortgage
Drawbacks
  • Higher interest rate than a 15 year fixed rate mortgage
  • Interest rate stays the same even if interest rates go down

15 Year Fixed Rate 15 Year Fixed Rate

A 15 year fixed rate mortgage allows you to pay off your loan quicker and lock into an attractive lower interest rate.

Benefits
  • Lower interest rate
  • Build equity faster
  • Interest rate does not go up
Drawbacks
  • Higher monthly payment stays the same if interest rates go down
  • Interest rate stays the same even if interest rates go down

FHA Loans

FHA mortgage loans are issued by federally qualified lenders and insured by the U.S. Federal Housing Authority, a division of the U.S. Department of Housing and Urban Development.

FHA loans are an attractive option, especially for first-time homeowners:
  • Generally easier to qualify for than conventional loans.
  • Lower down payment requirements – 3.5% minimum
  • Cannot exceed statutory loan limits.

VA Loans

Designed to offer long-term financing to American veterans, VA mortgage loans are issued by federally qualified lenders and are guaranteed by the U.S. Veterans Administration. The VA determines eligibility and issues a certificate to qualifying applicants to submit to their mortgage lender of choice. It is generally easier to qualify for a VA loan than conventional loans.

Here is how it works:
  • 100% financing without private mortgage insurance or 20% second mortgage.
  • A VA funding fee of 0 to 3.3% (this fee may be financed) of the loan amount is paid to the VA.
  • When purchasing a home, veterans may borrow up to 100% of the sales price or reasonable value of the home, whichever is less.
  • When refinancing a home, veterans may borrow up to 90% of reasonable value in order to refinance where state law allows.

RHS/USDA Loan Program

The U.S. Department of Agriculture offers a variety of programs to help low to moderate-income individuals living in small towns or rural areas achieve homeownership. The Rural Housing Service (RHS) helps qualifying applicants, who cannot receive credit from other sources, purchase modestly priced homes as their primary residence.

RHS Loans are an attractive option because:
  • Minimal closing cost
  • Low or no down payment

RHS loans can be used toward the purchase and renovation of a previously owned home or a new construction. Families must be able to pay their monthly mortgage, homeowner’s insurance and property taxes.

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(218) 722-2557

Email:
home@lendsmartmortgage.com

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4894 Miller Trunk Highway
Suite #4
Duluth, MN 55811

 

 

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