At Gem Home Loans, our experts can tell you about a lot of different loan options, and tell you the pros and cons of each so you can make the best informed decision possible in Grandville, Michigan. We’ll only recommend loans that we feel are the best for your specific economic situation. You won’t have to worry about us trying to steer you toward a loan that will do nothing but leave you with financial misery. Here are just a few examples of the many different loans we have available.

Adjustable-Rate Mortgages

Mortgage Company Grandville, MichiganIf you’re looking to purchase a home for the first time, you might not be that familiar with this type of loan. An adjustable-rate mortgage (ARM), as the name implies, has a rate that fluctuates as time goes by. In most instances, an ARM will first start out as a fixed-rate loan, which you’ll learn more about in the next section.

One example is the so-called “7-1” ARM. Borrowers pay a fixed rate for the first seven years of the loan, then pay an adjustable rate every year afterward. One year the rate might be lower, while another year it might be higher. A lot of homeowners find an ARM is a much more affordable option than other types of programs.

Fixed-Rate Mortgages

If you don’t like rollercoasters, then this is probably the best type of loan for you. A fixed-rate mortgage is, well, fixed. It stays the same for as long as you pay the loan. The most common fixed-rate loans run for 15 or 30 years. However, there are other options as well, including 18-, 20- and 25-year loans.

But let’s go back to the 15- and 30-year options. A 15-year loan will save you a great deal of money in interested compared to a 30-year loan. However, your monthly payment will be much larger. If you go the 30-year route, on the other hand, your payments will be lower but you’ll pay a lot more in interest – possibly tens of thousands of dollars more. The good news is that not only will your payments be more manageable, you’ll probably be able to afford more home than you would with a 15-year mortgage.

Government Loan Programs

The mortgages mentioned above are known as “conventional” loans, because they’re what most homebuyers get. Unfortunately, these kinds of loans can sometimes be difficult for those with dings on their credit report to be able obtain. That’s where loans backed by the United States government come in. The following are a few examples.

  • VA loans – These are backed by the Veterans Administration, and have been wildly popular since the 1940s. They offer extremely low interest rates, they don’t require a down payment, and you don’t need a high credit score. But they’re very hard to get because their eligibility requirements are extremely strict.
  • USDA loans – The U.S. Department of Agriculture, you may be surprised to learn, also has a home loan program. They also offer low rates, and often don’t require anything down.
  • FHA – Federal Housing Administration loans are really popular among first-time buyers. They feature stable rates and a low down payment. You also don’t need a sterling credit score.

Our mortgage company in Grandville, Michigan is ready to help your dreams of home ownership come true. Call Gem Home Loans at (248) 780-1030 or use our online contact form to get in touch.