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What type of Mortgage is Best?

posted by Stephen Katz @ 10:01 PM
Sunday, May 22, 2011

A mortgage is a loan where the house and land are used as collateral for the loan. If the borrower fails to make his payments, the bank forecloses on that property. In the case of foreclosure, the bank may sell the house to clear the mortgage debt.

Here are some types of mortgages can help first-time home buyers understand the fundamentals:
Conventional Mortgage – this is a mortgage loan wherein the underlying terms and conditions meet the guidelines of Fannie Mae and Freddie Mac. Depending on market conditions and consumer trends, about 35-50 % of mortgages are conventional mortgage.

FHA Mortgage – this was initially intended for low income individuals. FHA mortgages are home loans that meet underwriting guidelines set by Federal Housing Administration (FHA) and supported by Government National Mortgage Association (Ginnie Mae).

VA Mortgage – this is offered to veterans of the United States Armed Forces and secured by the U.S. Department of Veterans Affairs. This type of mortgage requires a lower down payment , ofter zero down.

The type of mortgage that best fits a home buyer is chiefly determined by his/her financial status. Each mortgage loan requires a different down payment, different qualifying criteria, and different credit score standards.
Fixed-rate Mortgage (FRM) – this is a mortgage loan where the interest rate on the note remains the same through the term of the loan. They are the most popular. For first-time home buyers, the common choice is the 30-year fixed-rate loan, but other terms are also available.
Adjustable-rate Mortgage (ARM) – this is a mortgage loan where the interest rate on the note can periodically change. The interest rate adjusts with the market at some point during the term. The borrower benefits from a lower introductory rate.

Stephen Katz

(770) 309-0939 (direct) or (866) 742-8400 —

For the past 18 years, Stephen Katz has built a successful business almost entirely on referrals. As your mortgage consultant throughout the home loan process, Stephen will explain the pros and cons of all available mortgage programs and help you choose the financing option that is best suited to your needs.
Throughout the loan process, he will keep you informed and will respond quickly to your requests with answers and solutions.

Consistently a top producer, Stephen is a Mortgage Bankers Association “Diamond” Award winner, a Georgia Mortgage “Top Gun” and has closed almost half a billion dollars in loans. Put his knowledge and experience to work for you!

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