Fidelity Financial Investments, Inc - Mortgage Types Your one stop shop for all your real estate and financing needs.

There are diiferent mortgae types for various situatuion and each mortgage is designed for a specific purpose and borrower.

Fixed-rate mortgages

This is, by far, the most popular mortgage. In a fixed-rate mortgage, your interest rate stays the same for the term of the loan, which normally is 30 years. The advantage is that you always know exactly how much your mortgage payment will be, and you can plan for it. Fixed-rate mortgages are a good choice if you expect to remain in your home for a number of years. The good news for you, the first-time home buyer, is that you can put down as little as five percent of the purchase price. But, if you put down less than 20 percent, keep in mind you will have to pay mortgage insurance.

Fixed Rates also have a 15 year term. A 15 year term can save you thousands of dollars in interest.

Fixed rates can be converted to a Bi-Weekly Plan which takes your monthly payment and splits it in half. Your mortgage/loan gets paid every other week. Over a 52 week period of time, you would have made an extra monthly payment. By converting you can save thousands of dollars in interest.

Adjustable-rate mortgage (ARM)

With this kind of mortgage, your interest rate and monthly payments usually start lower than a fixed-rate mortgage — but can go up or down, as often as once or twice a year. This is a popular first-time home buyer loan because the initial low interest rate could get you in that dream house. Of course the disadvantage is, if interest rates go up, you may suddenly be stuck making a pretty hefty house payment.

Balloon mortgages

Balloon mortgages are typically offered at lower interest rates than other fixed-rate products, making them more affordable. However, principal and interest payments only remain constant for the term of the loan (about five to seven years), at which time you can pay off the mortgage or refinance. Again the bad news is — if it comes time to refinance and rates are high, you'll be stuck with a higher payment. If you know you'll be in your home for less than the term of the mortgage, this may be the first-time home buyer mortgage for you.

First time home buyers programs

As a first -time home buyer you can apply for the programs above. Please read the information regarding those particular programs.

Reverse Mortgages

This type of loan borrowers and spouse must be 62 or older. The loan does not require income or credit score.
You have the secuirty to stay/own your home.
You have the freedom to chose how the money is spent.
You have mulitple ways to acess your funds.

VA Loans

Military personel can get government help on there next purchase.
Use your VA loan to buy a home with no down payment. The Department of VA recently increased the Maximum Guaranty Amount for veteran home loans.

Construction loan

Private construction loans can have single or double close.

Single-close loans start at a higher rate and then once the work is certified as completed, the rate drops.

Double-close loan, you close the construcytion portion and then return to close a second end loan for the home once the work is complete.

Government Loans

FHA and "GSE" Programs available from Fannie Mae and Freddie Mac.

Banks and lenders in this enviorment are contsantly changing programs , Programs and underwritting can change without notice. So you need to apply now, it`s FREE