Your Home Loan Options
Whether you’re buying a new home or refinancing your current mortgage, Augusta Mortgage Company has the experience, flexibility, products and services you need at rates and terms you can afford.
There are many different factors that can influence your selection on a mortgage, but the most important are these:
- Your current financial situation and resources
- How you expect your finances to change
- How long you intend to keep the home you’re buying
- How comfortable you are with the idea of your mortgage payment changing from time to time
Fixed and Adjustable Rate
A fixed rate loan means your interest rate and monthly principal and interest payment will stay the same (taxes and insurance may increase).
Consider a fixed rate loan if:
- You want the security of knowing your house payment will never change. (Except taxes and insurance)
- You expect interest rates to go up while you’re in the home.
- Your income will stay about the same.
Adjustable Rate Mortgage (ARM)
This loan allows the interest rate to change at specific adjustment intervals over the term of the loan. Interest rate declines and increases are based on the financial index used by the lender and are limited by other provisions of the loan.
Consider an ARM loan if:
- You want to afford more house than a fixed rate loan will allow.
- You expect interest rates to stay the same or go down while you’re in the home.
- You expect to sell you home soon.
FHA, VA, USDA, and Conventional Financing
When you apply for a home loan, you may have the opportunity to select between FHA, VA, USDA, or Conventional financing. Both fixed and adjustable rate.
