Different Types of Mortgages...
Conventional or conforming mortgage loans are private loans that aren’t secured by a government agency and meet guidelines established by Fannie Mae and Freddie Mac. To get approval for a conventional mortgage loan, you must meet FICO score, debt-to-income ratio and loan amount requirements. A down payment of 20 percent is also typically suggested or required.
There are many scenarios where you don't need 20% however. To learn more now, Check out some of our top Mortgage Lenders in 2020!
An FHA loan is a certain type of mortgage issued by a specific FHA-approved lender and insured by the Federal Housing Administration (FHA). these mortgage loans are available for low-to-moderate income borrowers. FHA loans require lower minimum down payments and credit scores than many conventional loans. - Source
Even if you owe more than your home is worth, as long as you are a current FHA loan holder, you can apply to refinance your mortgage for a lower rate and payment with the FHA Streamline program. The program has flexible credit and minimal documentation requirements and no required appraisal. Fixed-rate loans are offered in 15- to 30-year terms, and 5-year ARMs are also available.
A cash-out refinance is a mortgage loan that satisfies your current mortgage balance and allows you to use the equity in your home for personal use. This type of loan might make sense for you if you can get a better interest rate than that of your current mortgage, you plan to shorten the term of your loan instead of refinancing for 30 years, and you plan to keep your mortgage for at least several more years. For more info Check out 2020's Top Cash-Out Refinance Lenders Here Today!
Home Equity Loans:
When you prefer to keep your current mortgage, a home equity loan is an option. Funds are received as a one-time, lump-sum payment. Functioning as a second mortgage, these loans typically have a fixed rate and require that you repay interest and principal each month.
Reverse Mortgage Loans:
Unlike traditional mortgages, which decline as you pay down the loan, reverse mortgages rise over time as interest on the loan accrues. You give up some of the equity in your home to then get regular payments moving forward - often time used for people looking for ways to earn extra money for life events like retirement.
Are you looking to add some extra income to your life? Do you have a lot of equity in your home? A reverse mortgage can help you get money out of your home that you can enjoy today. Depending on your circumstances, a reverse mortgage may be a great choice giving you supplemental income for the rest of your life. To determine how much you may be eligible for, get a Free Quote from our Top Reverse Mortgage Partner Today!