Conventional Real Estate Financing
Before you acquire any form of real estate, whether it be: your primary residence or investment property, you need to explore your real estate financing options.
Without proper funding to back your purchase, quite frankly you're wasting your time.
In today's current market place, you have quite a few real estate financing options, with low-interest rates and terms to fit your needs!
The mortgage products available today for consumers are in two categories; conventional loan programs, and government loan programs. Within these two programs you can choose a fixed rate mortgage or an "ARM" adjustable rate mortgage.
Fixed Rate Mortgage
A fixed rate mortgage means the rate of the loan is fixed for it's entirety. For example, if you purchase a home with a 5.5% 30 year fixed rate mortgage, your rate will never change, so your principal and interest payment will be the same for 30 years!
Adjustable Rate Mortgage
An adjustable rate mortgage is fixed for a certain number of years and then will change after that period. For example if you get a 5.25% 5 year ARM for 30 years, your interest rate of 5.25% is fixed for the first 5 years of the 30 year loan.
After the first 5 years the interest can adjust either up or down depending on the current market conditions.
What Is A Conventional Loan Program?
A conventional loan is a loan that is made by a lender or a bank and either serviced by that bank or sold on the secondary market. Most conventional loans are conforming loans, which means they must follow the guidelines setup by Fannie Mae and Freddie Mac.
What Is A Government Loan?
Government loans are loans that are still made by banks, but are insured by the government against default of the borrower on the mortgage.
This means if the borrower stops paying the mortgage and the bank has to foreclosure on the property, the government agency will buy the property from the bank because it insured the loan.
There are three types of government insured loans; FHA Loans, VA Loans, and USDA Rural Housing Loans.
FHA Loans are loans insured by the Federal Housing Authority. This type of loan is currently the most used loan among first time home buyers. VA Loans are loans insured by the Veterans Administration. USDA Rural Housing Loans are insured by the Rural Development Agency.
In today's current market place, you have quite a few real estate financing options, as well as, low-interest rates and terms to fit your needs!
Here's a short list of online resources for conventional real estate financing:
Lending Tree allows you to connect with Lenders that are competing for your business. You'll have access to an array of tools and resources to make an educated decision.
Just click on the "Tools & Resources" page to access a live mortgage calculator, live mortgage rates, and a complete list of Loan Officers in your backyard.
What I like most about their level of service, is that none of your personal information is required. You get instant mortgage loan quotes, without submitting any personal information, no commitment, and you receive personalized quotes in seconds!
No matter whether you're searching for financing for your first property or maybe looking to find the best refinance rates, Lending Tree has the home loan options for any consumer.
Quicken loans offers a streamlined hassle-free approach to financing your next home.
Their pre-approval process literally takes a few minutes to complete, upon completion you'll find out what you qualify for, and what payment you're comfortable with, after the pre-approval process.
This will phase out any undesirable surprises before you close on your dream home.
Benefits Of Working With Quicken Loans:
If you're interested in learning about creative real estate financing options for real estate investors, click the links below:
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