Finance

Local Mortgage Experts

Windham Realty will connect you with an independent mortgage broker in your area. This means you will have a local expert by your side for one of your biggest financial decisions. Having an independent, licensed professional, mortgage broker is interictal. They can shop multiple lenders — giving them access to more loan options than what a bank can offer. Ultimately the result is a cheaper, faster, and easier loan process for you. One that is specific to your home financing needs.

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Types of Mortgages

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Fixed-rate mortgage/30yr

It is a home loan with an interest rate that’s set for the entire term.

  • Most popular

  • Your interest rate never changes

  • Lower monthly payment

Fixed-rate mortgage/15yr

This mortgage also has an interest rate that’s set for the entire term.

  • Often used for refinancing

  • Interest rate is set for the life of the loan.

  • Lower interest rate than with longer-term loans.

  • Higher monthly payment with less total interest paid.

Adjustable-rate mortgage

An adjustable-rate mortgage is a home loan with an initial rate that’s fixed for a specified period (For example a 5/1 ARM), then adjusts periodically.

  • Initial “teaser rate” is lower than on most other loans. This gives a comparatively lower monthly payment at first.

  • Rates can often be locked Initially for one, five, seven or 10 years.

FHA mortgage

FHA stands for the Federal Housing Administration. It is a government back loan and is used to help borrowers of more modest means.

  • A Credit scores as low as 500 can qualify.

  • Mortgage insurance is required with premium payments.

  • Borrowers can apply a down payment less than 20%.

VA mortgage

VA loans are mortgages backed by the Department of Veterans Affairs and are available to military service members and veterans.

  • No down payment required.

  • Upfront VA funding fee required.

  • No mortgage insurance.

USDA mortgage

USDA home loans are mortgages backed or issued by the U.S. Department of Agriculture.

  • No down payment is required.

  • Grants and home improvement loans are also available.

  • Caps on income and property value apply.

Jumbo mortgage

Jumbo loan limits vary by county and are above a certain dollar amount. They are adjusted periodically.

  • They can have fixed or adjustable rates.

  • These loans often require a credit score of 700 or higher.

  • Require a down payment of 10% or more.

Interest-only mortgage

This mortgage requires payments only on the lender’s interest charge. The principal or loan balance is not reduced during this interest-only payment period.

  • For borrowers who are disciplined to make periodic principal payments.

  • Can be for home buyers who don’t expect to remain in a house for an extended period.

  • Lenders require substantial assets to qualify.

Mortgage terms and questions:

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What are Conventional mortgages? This describes loans that aren’t backed by the government.

Conforming mortgages: An industry term, that defines a mortgage meeting the local loan limit, as set by the government.

Types of government-backed mortgages: Guaranteed loans by the Department of Veterans Affairs (VA loans), FHA-insured loans and loans backed or issued by the Department of Agriculture (USDA loans).

What are reverse mortgages? A way to unwind equity in a home as a lump sum or stream of income, for homeowners over age 62.

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Interest Rate Matters

A difference of 1% may not seem a lot, but when you're comparing monthly mortgage payments, the amount you could end up paying in additional interest can be staggering. The bottom line is…Interest Rates Matter

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Credit Scores

Financial institutions use credit scores to determine a borrower’s risk level. The three credit bureaus used to determine this are Equifax, Experian, and TransUnion. These companies calculate an individual's credit score. The better your credit score, the lower an interest rate you're likely to get. This also means you'll have a lower monthly mortgage payment.

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Negotiation Tips

Here are six tips for getting the best price on a home:

  1. Get Prequalified for a Mortgage.

  2. Ask in depth questions.

  3. Always offer less than your bottom line for your initial offer.

  4. Avoid contingencies in your contract.

  5. Don't let other bids or an aggressive market change your plan.

  6. Remain in control and unemotional.