types-of-mortgages

Types of Mortgages

Choosing the right type of mortgage loans for buying a home can be a daunting task. This job requires an expert advice. At 5Star Capital, we offer a wide variety of home mortgage loans for buyers of all kinds. Our experts can guide you right from the beginning till end of your home buying process.
If you are confused which type of home mortgage loans is right for you, this guide can help you understand your options better.

Fixed Rate Mortgages

Fixed rate mortgages offer many advantages over other home financing options. It is ideal for both first time home buyers and experienced buyers. With this type of loan option, your interest will stay same over the complete life of your loan, offering you stability for your monthly housing expenses.

  • 30 Year Fixed Rate Mortgage: One of 5Star Capital’s most popular home financing options, a 30 year fixed rate loan offers the protection of fixed payments and security from inflation.
  • 15 Year Fixed Rate Mortgage: Just like our 30 year fixed rate mortgage, the 15 year mortgage lets you rest easy in the knowledge that your monthly payments will always be the same. They are perfect for buyers who want to build equity quickly or who want to pay off their loan before worrying about expenses like college fees or early retirement.

Adjustable Mortgage Loans

Adjustable mortgage loans can be a better option for those who are looking for refinance option but need lower payments than a 15 Year or 30 Year Rate Mortgage. This type of mortgage loans offer the flexibility of lower rates and payments for fixed terms of 3, 5, 7, 0r 10 years with lower initial interest rates. Adjustable mortgage loans are perfect for those who often relocate, for growing families and real estate investors.

FHA Loans

The Federal Housing Authority insures FHA loans so that mortgage lenders like 5 Star Capital can extend home purchase financing and refinancing to buyers who might not be able to otherwise afford a new mortgage. These loans can be a great home financing option for buyers who need a first time mortgage, since they require lower down payments as little as 3 percent and have much friendlier job and credit requirements than traditional mortgages.

VA Loans

The VA loan was created in 1944 by the U.S. government to guaranteethe lenders for lending to returning service members to purchase homes. Since its inception, the VA Loan program has helped place more than 20 million veterans and their families into an affordable home financing situation through its distinct advantages over traditional mortgages.

Today, the VA Home Loan program is more important than ever the veterans. In recent years, lenders nationwide have tightened their lending requirements in the wake of the housing market collapse, making the VA Loan a lifeline for military homebuyers, many of whom find difficulty when faced with tough credit standards and down payment requirements.

Reverse Mortgages

A reverse mortgage is a type of mortgage loan that the FHA (Federal Housing Administration) insures. This is a type of loan that is only available to homeowners aged 62 or older.

It is different from all other types of mortgages. A HECM (Home Equity Conversion Mortgage) reverse mortgage does not become due for as long as the homeowner lives in the property as their primary residence, continues to pay required property taxes and insurance and maintains the home according to FHA requirements.

Contact one of our mortgage lender specialists today. We offer an array of mortgage loans including VA loans, FHA loans,interest only mortgage, Jumbo mortgage loans, reverse mortgage and home improvement loans.