If you're thinking about buying a home, you're probably going to need a mortgage, too. The biggest misconception about home loans is that there are only a few options out there—but that couldn't be further from the truth. In reality, there are hundreds of different mortgages from which to choose, which can be a bit overwhelming even for an experienced buyer.
Need advice on home loans, interest rates, or the application process? I'm here to help! Here's your all-in-one guide to securing a mortgage in the Triangle.
Conventional Loan
- Last for 15 or 30 years
- Can be fixed-rate or adjustable
- Requires great credit, financial history, and a 20% down payment
USDA Rural Loan
- Available in more rural areas
- Requires low or no down payment
- Aimed at buyers with steady and modest income
FHA Loan
- Less strict credit requirements
- Lower down payment options
- Requires mortgage insurance and could have higher interest rates
VA Loan
- Only available for active military or veterans
- Little to no down payment with no mortgage insurance
- Possible one-time funding fee
Lender Specialty Loans
- Some banks, brokers, or lenders offer their own programs
- Down payment or credit requirements can vary
- Aimed towards first-time or lower income buyers
Shared Appreciation
- Buyers get lower rates, but they must sacrifice equity if they sell their home
- The lender makes their money when the buyer eventually sells and shares the profit
- Targeted towards lower income buyers
NC Home Advantage Mortgage
- State-funded program for first-time and move-up buyers
- Offers up to 5% down payment assistance
- Can be combined with other other government programs
Balloon Mortgage
- Payments are based on a 30 year loan but are paid off in less time
- At the end of the loan, the borrower must pay the lump sum or convert the loan
- Often have lower interest rates or credit requirements
Finally, Calculate Your Mortgage
Now that you've learned all about interest rates and home loans, it's time to start crunching some numbers. Take a look at my mortgage calculator below to start estimating your monthly payments, and let me know if you have any questions!
Mortgage Calculator