The main types of mortgage loans to apply for in San Antonio
There are very many types of mortgage loans that are offered in San Antonio. This is in an attempt by lenders to provide solutions to all the financial needs of homebuyers. This being the case therefore, you should never forfeit your aspirations of buying a home due to lack of resources. Nonetheless, you will need to trend carefully, so as not to choose the wrong mortgage that does not rhyme with your needs. This article will therefore delve into the four main types of mortgage loans, so that you can make an informed decision when applying for one.
30-year Fixed Rate Mortgage
The 30-year fixed rate mortgage is one of the most popular mortgage loans available in the San Antonio lending scene. This is because it gives borrowers ample time of 30 years to service the mortgage, while attracting fixed interest rates. The good thing with 30-year fixed rate mortgage is that it demands low monthly installments, allow you to plan on your finances, and afford many houses. Nonetheless, you will have to contend to pay high total interest rates.
15-year Fixed Rate Mortgage
15 year fixed mortgage rates in San Antonio is the complete opposite of the 30-year fixed rate mortgage. This is because it allows borrowers to service it within 15 years after qualification. Similarly, the mortgage loan attracts fixed interest rates. What makes the 15-year fixed rate mortgage a success is that it attracts low interest rates and it allows you to build your home equity quickly. Nonetheless, this mortgage loan requires you to pay high monthly installments.
7/1 Adjustable Rate Mortgage
The 7/1 adjustable rate mortgage is a type of mortgage, that attracts fixed interest rates in the initial years, after which it starts charging different rates according to market trends. The number 7 represents the number of years that the mortgage will attract fixed rates. The number 1 on the other hand, represents the number of years that the adjusting rates will keep changing. The good thing with the 7/1 adjustable rate mortgage is that it attracts low rates in the initial years and low monthly installments.
5/1 Adjustable Rate Mortgage
The 5/1 adjustable rate mortgage is similar to the 7/1 mortgage. Nonetheless, what makes them differ is the number of years that they charge fixed interest rates. The 5/1 adjustable rate mortgage loan attracts low interest rates in the initial years as well as low monthly installments, which enables you to save. However, whenever you apply for this mortgage loan, you might find it difficult to sell or refinance the home in the future. In addition, the payments can be rendered unaffordable once the loan resets.
San Antonio Mortgage Rates 