Mortgage Types
There are as many as 250 mortgage loan options out there. Yet most people opt for the 30-year fixed – often the MOST EXPENSIVE mortgage you can get. How do you know which to choose? Consult the experts at The Manders Group, we look at your mortgage as an investment tool – and make sure you can use it to reach your financial goals. The best way to get started is to contact a Manders Group Mortgage Planner.

Some of the Most Common Types of Mortgage Available:
FHA and VA loans are government loans. All other loans are generally classified as conventional loans.
* Residential * Commercial * Land * Construction * No Doc Loans *

FHA Loans
The Federal Housing Administration (FHA) is part of the U.S. Department of Housing and Urban Development (HUD). FHA administers various mortgage loan programs that have lower down payment requirements and can be easier to qualify for than conventional loans. FHA loans have statutory limits.

VA Loans
VA loans are guaranteed by the U.S. Department of Veterans Affairs allowing veterans and service persons to obtain home loans with favorable terms and often without a down payment. While it’s easier to qualify for a VA loan than a conventional loan, lenders generally limit the maximum VA loan to $ 203,000. The VA doesn’t make the loans, but recommends you via a certificate of eligibility to your lender.

Fixed Mortgages
Any Fixed Mortgage locks in the interest rate for the length of the loan. While you can always refinance, a fixed rate insulates you from increasing rates, but keeps you from automatically enjoying rate declines.

30-Year Fixed Mortgages
The most popular mortgage loan taken, this can also be the most expensive way to go. You lock into a mortgage rate for 30 years which makes it easy to budget your monthly payment, however most people only live in their homes for 5-years, so there may be less expensive, money-saving ways to go. It pays to consult with the experts at First Mortgage Company about alternatives that match your lifestyle and financial goals.

15-Year Fixed Mortgages
With a 15-year fixed mortgage you can own your home in half the time of the traditional 30-year mortgage, by paying more each month. Qualifying may be tough as higher income is needed to support the ability to make the higher payment.

40-Year Fixed Mortgages
40-Year fixed mortgages have been around for a while, but they are enjoying a new resurgence as more and more people decide that paying for their home is not the end goal. For instance, people in their 40’s and 50’s taking this loan knowing they’ll not pay it off.

Reverse Mortgage
A reverse mortgage is a special type of home loan that allows homeowners, ages 62 and older, to convert part of their home's equity into tax-free income. In a reverse mortgage, instead of the homeowner making payments to the lender, the lender makes payments to the homeowner. The homeowner may choose how this money is received: in a lump sum, fixed monthly payments, a line of credit, or a combination of these. When the homeowner sells their home or no longer uses it as their principal residence, they (or their estate) will repay the loan. Any remaining equity in the home will go to the former homeowner, or their heirs. To answer some questions you might have click here.

Interest-only Mortgages
Unlike traditional home loans, the monthly payment covers only interest for a set amount of time, such as 10 years. After that time, the payment will increase (often markedly) and the loan is paid off by reducing the principal due each month for another 20 years. Interest-only loans are increasingly popular today allowing buyers to get into a higher-priced home than they might otherwise be able to afford, but there are obvious risks. This type of mortgage is not recommended for first-time buyers, or those not familiar with the advantages and drawbacks of paying for a house over time.

Split or PiggyBack Loans
Split or PiggyBack loans can be used to get into a home with little to no money down and avoid paying PMI. With this mortgage you’re essentially splitting the purchase price into two mortgage loans covering 80% and 20% respectively. You pay more interest on the second loan, but this may allow you to have a relatively low monthly payment, avoiding a down payment and PMI.

Adjustable-Rate Mortgages (ARM)
Unlike fixed-rate mortgages, the rate on this loan is adjusted to the market annually or every 3 or 5 years. You can usually get into this loan with lower payments initially – 2-3% lower than traditional loans, making buying more affordable.

Hybrid Loans
As its name suggests, a Hybrid loan combines the characteristics of a fixed rate loan with an adjustable rate loan. You start by carrying a fixed interest rate for a certain period of time, then move to an adjustable rate. The lower rate can be fixed for a varying number of years with the best rate available with a shorter fixed time period. This is a loan you may want to avoid if you plan to own your home (vs. trading up with conversion).

Low-Down, No Document Loans
This type of loan may be recommended to you if you have trouble verifying regular income. Lenders don’t require proof of income or assets and no debt-to-income ratio is used. To take this loan, you will pay a higher interest rate because of the risk to the lender and you will pay a bigger down payment. You will also have to meet higher credit standards..