The Weiss Group at Compass

What are the most commonly used types of mortgages?

There are a few major different types of mortgages that homebuyers choose, which are:

* Fixed-rate mortgages – these loans remain the same for the life of the loan, so you’ll always know what your monthly payments are.

* Adjustable-rate mortgages – with these loans, the interest rate usually starts out low during the introductory period and then changes to be higher or lower. They are displayed like this, for example: a 5/1 ARM. In this case, the introductory period lasts 5 years, and then the interest rate can change every year after that. The change is dependent on a market index (like the yield on the one-year Treasury bill) which is noted on your loan. 

* Conventional loans – these can be good if you have a higher credit score, and the borrowing cost can be lower even when interest rates are high. These can be fixed or adjustable, and they differ because they are not government-backed and tend to be harder to qualify for. 

* Government-insured loans – these are insured by the government, so lenders have less to risk if you don’t pay on time (FHA loans fall under this category).

* VA loans – according to the U.S. Department of Veteran Affairs, VA home loans are designed to help servicemembers, veterans, and eligible surviving spouses become homeowners. The VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms.

We’re seeing Austin’s housing market shift more toward a buyer’s market each day. In order to be able to act quickly on a home you are interested in, knowing your financing options and working with an experienced agent will give you a competitive edge.  Let’s chat to go over your real estate goals!

Floating shelves in a kitchen have become a very popular alternative to exclusively using upper enclosed cabinets.

They add visual interest, are an inexpensive way to add color, and can be used to showcase your favorite decor.

Kitchen Design:

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