It will be impossible for you to finance your house on your own if you are not rich. You will need the help of banks, credit unions or San Diego Mortgage companies. These financing companies will help you purchase your house on the strength of various home loans. These home loans come with different pros and cons. If you need to find your perfect home loan, you need to learn about their salient features. The four most popular home loans are – FHA, VA, fixed rate and adjustable rate home loans. There are several other hybrid and special home loans available in today’s market.
Optional Mortgage Loans
Option-ARM
The Option ARM loans are complicated to compute. The ARM stands for adjustable rate mortgages. The rate of interest will increase over time with this type of San Diego home loan. The main difference between option-ARM and simple ARM is the presence of various options. In simple ARM, you will not have miscellaneous payment options. In option ARM, you will have a variety of index rates along with customization payment options. You may select the best option as per your liking. You only need to be aware of one cautionary fact. The minimum payment option may seem lucrative. You may find yourself in the trap of negative amortization with this option.
Interest Only Mortgages
Like the name suggests, this San Diego home loan option will save you from paying any principal. You only need to pay the interest with this lending option. This feature may seem enticing. There is one glitch present with this mortgage type. You will not be allowed to make an interest-only payment forever. The period of interest-only payment may continue for five to 10 years. This time-period depends upon the years of debt clearance. The lent amount is amortized at the end of this period for the remainder of its term.
Combo Mortgages
The combo mortgages are also known as piggyback loans. You may divide this lending option in two parts – first and second mortgages. This lending option gives you the opportunity of choosing either fixed-rate or adjustable rate mortgages. You may even enjoy the benefits of both options after combining the fixed-rate with the adjustable rate mortgages. If you are in confusion, the San Diego mortgage companies may help you select the best option.
Streamlined-K
The dream home you have selected with perfect location and neighborhood may require huge restoration. You may not have the money to carry forward this repair work. In this situation, you will need the help of FHA. Its streamlined-K planning will help you obtain the necessary rehab fund. This may not be a traditional San Diego home loan. It helps you purchase your dream home in safe, secure and restored condition. This lending option requires less paperwork than FHA’s 203K program and is also easier to obtain for first-time buyers. Visit Here: Global Mortgage
Option-ARM
The Option ARM loans are complicated to compute. The ARM stands for adjustable rate mortgages. The rate of interest will increase over time with this type of San Diego home loan. The main difference between option-ARM and simple ARM is the presence of various options. In simple ARM, you will not have miscellaneous payment options. In option ARM, you will have a variety of index rates along with customization payment options. You may select the best option as per your liking. You only need to be aware of one cautionary fact. The minimum payment option may seem lucrative. You may find yourself in the trap of negative amortization with this option.
Interest Only Mortgages
Like the name suggests, this San Diego home loan option will save you from paying any principal. You only need to pay the interest with this lending option. This feature may seem enticing. There is one glitch present with this mortgage type. You will not be allowed to make an interest-only payment forever. The period of interest-only payment may continue for five to 10 years. This time-period depends upon the years of debt clearance. The lent amount is amortized at the end of this period for the remainder of its term.
Combo Mortgages
The combo mortgages are also known as piggyback loans. You may divide this lending option in two parts – first and second mortgages. This lending option gives you the opportunity of choosing either fixed-rate or adjustable rate mortgages. You may even enjoy the benefits of both options after combining the fixed-rate with the adjustable rate mortgages. If you are in confusion, the San Diego mortgage companies may help you select the best option.
Streamlined-K
The dream home you have selected with perfect location and neighborhood may require huge restoration. You may not have the money to carry forward this repair work. In this situation, you will need the help of FHA. Its streamlined-K planning will help you obtain the necessary rehab fund. This may not be a traditional San Diego home loan. It helps you purchase your dream home in safe, secure and restored condition. This lending option requires less paperwork than FHA’s 203K program and is also easier to obtain for first-time buyers. Visit Here: Global Mortgage
