Getting Your Dream Home: Common Home Loans

Taking that decisive step towards owning a home for yourself and your family is a big deal, and Vahe Hayrapetian understands that it can be discouraging to face the sheer number of options available to a first-time home buyer. How can you be sure if you’re getting the most for your budget? Choosing the right loan type can mean the difference between enjoying your home to the fullest and constantly struggling with payments. Let’s start with the most common home loans you can benefit from:

Fixed Rate Mortgage

When you avail of a fixed rate mortgage, you will be given a consistent interest rate for the duration of the loan. Fixed rate mortgages present the advantage of knowing exactly how much each payment will be, regardless of market shifts. Because of the consistency, this mortgage option tends to have more expensive rates compared to the others.

Adjustable Rate Mortgage

On the other hand, adjustable rate mortgages are usually less expensive in the outset. However, there is a fair amount of risk involved. Adjustable rate mortgages have interest rates based on existing market conditions. This means that shifts in the economy can cause the payments to grow.

Hybrid Home Loans

The hybrid home loan is a compromise between the other two types. The interest will be fixed for a pre-determined time period, usually up to seven years. After which, the lender can make adjustments to the rate depending on existing market conditions. This loan type allows the homeowner to establish themselves financially before taking on the added expense.

Obtaining a loan for your new home is a big decision, and you should take all the time you need to choose the right one that will fit your lifestyle and capabilities. Vahe Hayrapetian is always ready to lend a hand.