financing options
Contact a CCAR REALTOR or Affiliate member to find a home financing option that's right for you.
adjustable rate mortgages
Adjustable Rate Mortgages benefit people who plan to move or refinance in the near future, or those who expect their incomes to increase. ARM interest rates are dictated by changing market rates. When interest rates rise, monthly payments may increase and when interest rates decrease, monthly payments may decrease.
Usually ARMs have a lifetime periodic cap (limit) on the rate adjustments and total amount rate can change over time.
fixed rate mortgages
Fixed Rate Mortgages (FRMs) are the most common type of mortgage enabling consistent monthly payments; pre-payment penalties are rare.
10- to 15-Year Payment Plans are shorter loans that carry higher monthly payments but accrue less interest and enable equity to increase faster.
Biweekly Payment Plans are designed to shorten the term of a loan and allow for extra principal reductions each year, therefore shortening the original term of the loan.
reverse mortgages
Reverse mortgages enable senior homeowners, 62 years and older, to either purchase or stay in their homes and maintain/improve their standard of living without taking on a monthly mortgage payment.
Reverse mortgages enable senior homeowners to convert home equity into cash for living expenses, home improvements, in-home health care or other needs. Instead of making monthly payments to the lender, the lender may make monthly payments to the borrower, depending on the type of program selected. Criteria for approval differs greatly from other mortgages.
Borrowers may receive proceeds in a lump sum payment, fixed monthly payments for life, or a line of credit. Interest rates can fluctuate monthly/annually but monthly proceeds borrowers receive may not change.
government loans
The Federal Housing Administration (FHA) and the U.S. Department of Veterans Affairs (VA) loan programs enable borrowers to obtain financing with lower down payments. These loans are only available through approved lenders.
FHA (Government Insured) Loans require a very low down payment, typically 3.5% to 5% of the FHA-appraisal value or the purchase price, whichever is lower. Underwriting guidelines may be more lenient than conventional mortgage loans. Maximum loan limits vary depending on regional housing cost averages.
VA (Guaranteed) Loans provide service members, veterans and eligible surviving spouses additional options for home financing and housing-related programs that help them build, repair, retain, or adapt a home for personal occupancy. Because the VA guarantees a portion of the loan, private banks/mortgage companies can offer more favorable terms. Qualification guidelines are more flexible than FHA or conventional loans. Borrowers should check with authorized VA mortgage loan originators to determine eligibility.
The best way to find the right mortgage for you is to discuss your finances, plans and preferences with your REALTOR and a mortgage professional.
Disclaimer: The information above is provided solely for general informational purposes and is specifically not intended to be the basis for legal or financial advice. The information above should not be relied upon by the reader when forming a plan or decision of financing. Persons considering financing options for the purchase or refinance of real estate should consult with a professional before making any financial decisions.
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