Deciding on the right mortgage, in Rochester and across Michigan, is an important financial decision. As one of the best mortgage companies in the region, Gem Home Loans can guide you through the home loan options so you can be confident that you’re making the right choice.
Gem Home Loans is a client-focused lender that prefers working one-on-one with clients in building custom financial solutions. We have a dedicated team of experienced professionals who understand Michigan and the local housing market and who love what they do.
Our goal is to get to know you so we can fully understand your family’s needs and find you the best products for your new home, second home, or investment property. We are dedicated to providing you with the highest level of personalized attention and customer service throughout the home financing process.
Most borrowers are familiar with the 30-year fixed rate mortgage, a very popular type of home loan, and assume that this is the type of mortgage they need. However, you will also find 10-year, 15-year, 18-year, 20-year and 25-year fixed rate options available from Gem Home Loans.
Thirty years of consistent principal and interest payments may be easier on your budget, but loans with shorter terms allow you to:
Factors like your credit score and your down payment amount will affect the interest rate you will pay but, in general, the shorter the term of the loan, the less you will pay in interest.
Of course, the monthly payments are larger on shorter term mortgages. This can be a drawback for many borrowers and may not be feasible if you’re working with a tight budget. If you’re confident that your income will allow you to make higher monthly payments for the duration of the loan, however, you may want to consider the benefits of fixed rate mortgages with shorter terms.
When home loan shopping, you’ll also want to consider Adjustable-Rate Mortgages (ARMs). How do they work? On an ARM, the interest rate starts out very low and adjusts over the life of the loan. For example, a “7/1 ARM” means that the borrower will pay a lower fixed interest rate for a period of seven years and then the rate will adjust once each year thereafter.
This type of mortgage can be an effective way to pay less in interest than is possible with a 30-year fixed rate loan. The lower initial payment may also make it easier for borrowers to qualify for a larger loan. If you plan to move in a few years or intend to refinance near the end of the fixed-rate period, an adjustable-rate mortgage can be a good choice.
Home loans are also available from several government agencies, such as the Veterans Administration (VA), the Federal Housing Administration (FHA), and the U.S. Department of Agriculture (USDA).
These mortgages are generally available to borrowers who have lower credit scores and smaller down payments and can be an excellent solution for borrowers who are not eligible for traditional mortgages.
As you evaluate mortgage companies to help you with your home financing needs in Rochester, Michigan, consider Gem Home Loans. Get in touch with usat (248)-318-2394 or contact us online to discuss your many options one of our experts.