Mortgage Loans
A mortgage loan is a powerful tool for achieving homeownership, offering affordable financing through long-term, secured lending.
Conventional Loans
Government-Backed Loans
Jumbo Loans
Loans
Pros
Benefits of Mortgage Loans
Homeownership
Providing long-term financial stability and a chance to build equity.
LowerInterest Rate
Mortgages are mostly known for its benefit of lower interest rates.
Tax Benefits
Mortgage interest is eligible for tax deductions in some countries.
Fixed Payments
Mortgage loans offer fixed payments. which makes budgeting easier.
Key Features
Secured by Property: This reduces the risk for lenders
Long-Term Repayment: Allows for smaller monthly payments
Down Payment Requirements: Typically ranging from 3% to 20% of the home’s purchase price.
Private Mortgage Insurance (PMI): Borrowers making a down payment of less than 20% are usually required to pay for PMI
Amortization This structure allows borrowers to gradually build equity in the property.
Closing Costs: Includes fees for processing the loan, appraisals, title searches, and more.
FHA Loans: designed for first-time buyers or those with lower credit scores
VA Loans: Available to veterans and active-duty military personnel.
USDA Loans: Available to rural homebuyers.
- Pre-Approval
- Application and Underwriting
- Appraisal and Inspection
- Approval and Closing