The 5 Mortgage Types & Programs You Need to Know

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Posted on March 19th, 2014 in Mortgages by SSBblogger | No Comments

When looking for a mortgage, it’s best to know all the options available to you.

It may be hard to believe, but spring is almost here. And with spring comes warmer weather, brighter colors and the beginning of “home season.” Despite all the freshness and excitement in the air, spring can also be a time of great stress and confusion for those looking for a new home and needing a mortgage.

One common question we get at Security State Bank when it comes to mortgages is “Which mortgage is best for me?” There isn’t a real answer, as each person and family’s situation is different. However, we can give you a brief overview of some of the most popular mortgages and describe which type of person best fit this loan.

Fixed-rate loan- this type of loan locks your interest rate in for the life of your loan. This can be beneficial if you get your mortgage at a time when interest rates are low.

Adjustable-rate loan- the interest rate in this type of mortgage fluctuates based on market conditions.

FHA loans- these mortgages are focused on helping those with less than perfect credit, and require only 3.5 percent of a home’s value for down payment.

VA Guaranteed Loans- these mortgages are available to veterans of the United States Armed Forces. They help veterans (or their spouses, provided they did not remarry) purchase a home without a down payment.

USDA Rural Development Guaranteed Program- these loans help low to moderate income families purchase a home through 30-year fixed-rate financing.

Security State Bank also offers mortgages through the First-Time Home Buyer Program, as well as new construction to permanent financing, home equity loans, home equity lines of credit and bridge loans. If you’re looking to move to a new home in the area this spring or summer, get started by visiting the friendly mortgage experts at Security State Bank today!

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