Financing -
Types of Mortgage Loans
Ensuring the Perfect Fit.
There are a various mortgage programs available but not all mortgages may be right for your particular situation.
We encourage you to contact Aiello & Associates Mortgage to discuss your mortgage needs prior to making one of the most important financial decisions of your life.
The first choice of most mortgage customers, fixed-rate mortgages offer security and peace of mind by locking your mortgage interest rate for the entire term of your loan. 30-year fixed mortgage payments are the most common and affordable, but ask us to show you the difference in total interest by opting for a shorter-term fixed-rate mortgage loan like a 15-year or a 20-year. The savings can be striking.
Adjustable Rate Mortgages (ARM's) often offer lower interest rates in exchange for an adjustable rate feature. ARM's come with a variety of options, including some that have a fixed-period for 3, 5, 7, or 10 years before the rate starts to adjust. While they are not right for every borrower, the interest saved with an ARM is attractive for borrowers who do not intend to keep their loan for an extended period of time.
Insured by the Federal Housing Administration, this is a great loan for home-buyers with limited savings and low to moderate income. It features a low-down payment – and the down payment can be a gift or a grant.
This type of loan is available to qualified veterans or their widows or widowers who have not remarried. VA-insured mortgage loans have reduced interest rates, reduced closing costs, and often do not require a down payment.
This is a great mortgage loan program that offers low down payment options and reduced interest rates to help people buy their first home. (these loans are subject to certain cities, areas and median incomes).
This program is available for qualified applicants with moderate income looking to purchase a home outside of major metropolitan areas. It features a great interest rate, no mortgage insurance, and no down payment.
If you own your home, you have buying power. Use the equity you’ve established to help pay for unexpected expenses or short-term financial needs with a home equity line of credit (also called a “HELOC”).
This flexible financing tool is a revolving line of credit, so it works like a credit card. The interest rate will adjust with the prime lending rate, but the monthly payments often only require accrued interest to be paid. And since the loan is tied to the equity you have in your home, the interest you pay may be tax deductible. Be sure to consult with your tax advisor for eligibility.
You can use the equity on your home to borrow money to pay for home improvements, medical expenses, vehicles and other financial needs.
A home equity loan, also called a “second mortgage” since it’s secured against the value of your home, is different from a HELOC in that you will receive the full amount of the loan in a one-time lump sum at closing.
Both home equity loans and HELOC's use the equity in your home as collateral, but Home Equity Loans are fixed-rate loans with a fixed payment schedule (similar to a car loan or a first mortgage).
