by: Gaye Jones AnnieMac Home Mortgage
Choosing the right program for your mortgage can be overwhelming. A good Loan Originator should be able to look at your full financial profile and determine the best use of your funds. Sometimes you only qualify for one program, but there are many customers that have the choice of Conventional, VA or FHA loans. Determining if you are purchasing your forever home or a starter home will also play a role on which program is best for you.
Recently on the radio a financial guru that stated VA Loans were terrible loans. I totally disagree. VA Loans require no money down, have a low interest rate and no monthly mortgage insurance. They do require a funding/guarantee fee, but if the veteran has a service connected disability, then there is no fee added onto their loan. If the veteran has money to put down, he can either take those funds and invest or he can put some money down and lower that funding/guarantee fee.
All programs have their pros & cons, The Mortgage Loan Originator should provide the customer with the facts and comparisons to help them make the decision for them. One of the downfalls of working with an internet mortgage company is that they only take the information you input and run with it. They don’t necessarily counsel a borrower on what programs are available to them or what is the best program for their situation.
I’ve also heard many negative comments about reverse mortgages. In certain circumstances they can be the best option, but again, you need to know the facts. People often assume that the bank owns the house, however that is far from the truth! The borrowers still own the home. When they pass, their heirs have a year to either sell the home and collect the proceeds, refinance the home and move in or rent the property, or if the borrower outlives the mortgage and the value is less than the balance owed, the heirs can let the bank sell the home and take the loss.
If you choose to work with an experienced mortgage team, they will review all of your options, counsel you with the facts and help you to make the best decision for your future. Real Estate can be a great opportunity to invest and to build wealth.
Gaye Jones is a Loan Originator for AnnieMac Home Mortgage. See her ad below for more information on how to contact her.