What Home Mortgage Loan is Right for Me?
Determining the correct home loan for a buyer’s specific situation can often be a confusing situation, but here at Kingston Mortgage we love to help. Often the correct loan option is determined by the price of the property for purchase, the down payment, and credit score of the borrower. As a prospective borrower it is wise to be educated on all of the mortgage programs offered and the qualifications for each, especially if you are an investor, foreigner looking to purchase, an individual looking to refinance for spendable cash, or an individual looking to purchase a luxury property to live in. The following inclusive list breaks down all of the programs offered by Kingston Mortgage.
A conventional loan is a loan where the borrower places a down payment of 20% on a home ensuring no private mortgage insurance making it one of the best options for keeping a low monthly payment.
A FHA loan is a conforming loan that is backed by the Federal Housing Administration, and is meant for first time home buyers. Kingston Mortgage offers a program for FHA loans where the borrower puts a low down payment of 3%.
Our CalHFA program offers first time buyers with an excellent opportunity to purchase a property while we take care of the closing costs. With a minimum of a 3% down payment and a minimum credit score of 640, Kingston Mortgage will pay the closing costs.
A VA loan allows for no money down home purchase and is guaranteed by the Veteran’s Administration. This loan program is specifically for veterans and active military personnel.
Super Jumbo Loans
Super Jumbo Loans are typically used for borrowers who may not have all the conventional documentation for a mortgage. This option is best for foreigners, investors, and individual’s looking to use assets, or income as forms of proof. This program has down payment options starting as low as 1.5% and can fund amounts up to $15 million dollars. With unlimited properties finance-able, this is the BEST program on the market.
A jumbo loan is a loan for high end luxury homes. Kingston Mortgage’s jumbo loan program can finance loans up to $2.5 million. The program is also able to approve a loan with a low down payment of 5%.
Verification of Employment
Verification of employment is a type of loan that is issued based off the borrower’s employment. With a 20% down payment, Kingston Mortgage can approve a loan in the amount $2 million for a 15 or 30 year fixed loan, a 40 year interest only loan and 5/1 or 7/1 ARM loan.
True Stated Income
A true stated income loan is a unique program that allows Kingston Mortgage to fund loans after the verification of the borrowers funds can be established.
A multistate loan service means that once approved, the borrower’s loan can be transferred to any of the 20 different states in which Kingston Mortgage operate.
30 Year Fixed Loan
A 30 year fixed loan is a mortgage loan where the home buyer has a period of 30 years to pay off the entirety of their mortgage. As a fixed loan, the interest rate will never increase. Therefore, during this 30 year period, the mortgage payment and interest rate will remain the same, despite what occurs in the market. In other words, the payments will remain the same until the loan is paid off in full at the end of the 30 years. Due to their consistency, 30 year fixed loans are popular for the security and stability they provide.
In addition, since the monthly payments contribute to both the mortgage and interest, the overall balance of the loan will decease with each monthly payment made.
15 Year Fixed Loan
15 year fixed loan is a type of mortgage loan where the home buyer has a period
of 15 years to pay off their mortgage. Overall, a 15 year fixed loan will have
a higher monthly payment compared to a 30 year fixed loan. By having a higher monthly
payment, a home buyer will be able to pay back the loan within a shorter time
frame. As a result, the home buyer will get equity quicker.
In addition, as a fixed loan, the interest and monthly payment will never fluctuate, no matter what changes happen in the market. Since it will always remain the same during the 15 year period, this fixed loan also provides stability and security within the monthly mortgage payment.
Adjustable Rate Mortgages (ARM)
ARM stands for Adjustable Rate Mortgages and they are mortgages
where the interest rate fluctuates to adjust to the market rate at a specific
time. As an example, a home buyer can get an ARM where the interest rate will
begin adjusting 3 years after the loan is approved. After the initial increase,
it will continue to adjust once a year until the loan is paid in full.
The monthly payment of an ARM may start off as less than that of a 30 year fixed loan, but that may change as it adjusts over time. As the interest fluctuates to match the market rate, the home buyer may end up paying more or less their initial monthly payment. Due to its lower initial monthly payment, those home buyers who have a plan to sell the home within a certain number of years may benefit the most from an ARM. A home buyer who will sell before a certain year will be able to take advantage of the lower payments before the fluctuation affects their payments.