Dellmarie Pittman – Realtor
Dellmarie Pittman – Realtor
(910) 527-6111
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Finance Information

You have decided to purchase a home … How much home can you afford? There are several different loan programs available. Here are a few examples of the most common programs.

FIXED-RATE LOAN

This is the most popular mortgage today. Fixed-rate loans offer a fixed loan rate for the life of the loan. Most loans are 15-30 years. The monthly payment will not change which makes this an attractive loan to a buyer that plans to stay in their home for more than a few years.

ADJUSTABLE RATE LOANS

With an Adjustable Rate Mortgage (ARM) the interest rate changes periodically. This means your payment will go up or down accordingly. The interest rate is tied to an index that reflects the cost of money at a given time. Lenders may charge a lower initial rate for the adjustable rate loan than for the fixed rate loan. This can be attractive to a buyer that expects to be in this home for a shorter period of time.

FHA and VA LOANS

The Federal Housing Administration (FHA) offers loans to low-to-moderate income buyers. Generally these loans have lower down payments and easier requirement than a conventional loan. The Department of Veterans Affairs (VA) offers a zero-down mortgage program. If you are a veteran or are active duty in the U.S. Military you can take advantage of this loan program. A big benefit of this program is that it eliminates the need for private mortgage insurance.

OTHER LOAN PROGRAMS

Other loan programs exist periodically that could work for a home buyer. One such program could provide down payment assistance for a first time home buyer. Another program is designed to work with physicians. A local lender can assist you in finding the right loan program!

There are many programs available to home buyers! That is why I recommend a consultation with a local lender to determine the best program for you and provide a pre-qualification letter. Then, you can answer the question: “How much house can I afford to buy?”

With a pre-qualification letter in hand a seller knows you are ready to buy a house!

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Dellmarie Pittman – Realtor
(910) 527-6111
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