How Can You Know What Mortgage is Right for You?

Omaha Real Estate Podcast

There are a variety of opportunities in the Omaha real estate market for both buyers and sellers. If you're a prospective buyer click here for a full home search, or if you're considering placing your home on the market, get a free home value report, right here.

With so many different mortgages out there it can be difficult to know which kind might be right for you. Because staying informed is one of the best ways to ensure you make smart real estate decisions, we have put together a list of 4 types of mortgages you need to be aware of to be a smart home buyer:

1. Fixed-rate: These mortgages charge you the same rate for the agreed upon term - either a 15-, 20-, or 30-year period. While it's great to know exactly what to expect, the downside is when rates go down, your payments will not.
2. Adjustable-rate: This mortgage is a bit more of a risk. There is no long-term rate - rather, the period is usually 3 to 5 years. The upside is you initially lock in a lower rate; the downside is your payments vary and will go up when rates go up.
3. FHA: These are often used by first-time home buyers. With an FHA loan you can get into your home with as little as 3.5% down. The downside is that there is a cap on how much they can loan you.
4. VA: Both active and former U.S. service members are eligible for this loan. You can get into a home with no money down, but there is a cap on how much you can borrow.

Knowing the difference between the many loans out there is an important step in being an educated home buyer. If you have further questions about borrowing, don't hesitate to give us a call or shoot us an email. We would love to help you make the best possible real estate decisions.