Different Types of Atlanta Mortgage Loans

Posted by jennycooper on December 20th, 2014

Would you like to buy a house and you have no other option than applying for a mortgage? If so you should become familiar with the different types of mortgages and see which Atlanta mortgage is right for you. Savvy mortgage shoppers will find the best deals and they will make a lifetime decision they are satisfied with. Atlanta credit union is of great help for mortgage applicants in Atlanta. 

Finding a suitable mortgage is a time-consuming and frustrating task, mostly because there are various types of mortgages out there and most people don’t know how to differentiate them. How can you decide which Atlanta mortgage is right for you if you cannot tell the difference? The first thing you will have to decide when you apply for a mortgage is whether you want a fixed-rate or an adjustable rate loan. How do they differ? Fixed-rate loans will have the same interest rate for the entire duration of the loan. This means that your monthly payment will not change even if you apply for a 20 years mortgage.

The adjustable rate will be modified from time to time. Fixed loans have a higher interest rate while adjustable loans can be modified. Next, there are conventional Atlanta mortgage loans that are not insured not guaranteed by the government and government-backed loans like FHA  loans, VA loans, RHS loans. Another distinction we should not forget to make is that between jumbo and conforming loans. Online you will find relevant information on each of them. Tit is useful to know that some mortgage loans are riskier than others and they should be avoided. 

Risky mortgages are the ones that do not match your repayment ability. You have to find the right mortgage for you to avoid unpleasant surprises in the long run. For example, 40 year fixed rate mortgages are considered risky because the longer the duration of the loan the more interest you will pay. Furthermore, having such a long mortgage can affect your retirement. Atlanta credit union experts will advise you so that you select the right mortgage for you, one that you can afford to repay and that will not lead you to bankruptcy. Adjustable rate loans are risky because the amount you will have to pay on a monthly basis will increase. 

Next, there are interest-only mortgages; the borrower is required to pay only the interest of his loan for the first five to ten years, thus enjoying a lower monthly payment. Why are they not suitable for everyone? Because the monthly rate will increase, you will not be able to apply for a refinancing and you will pay a bigger interest in the long run. As you can see, there are various types of loans you can apply for but you should avoid high-risk ones. Contact Atlanta credit union consultants and take the time to figure out together the best type of mortgage for your particular situation. 

Resource box: Different people have different mortgage needs and at Atlanta credit union we strive to offer our customers useful information so that they make the best decisions. Let us help you figure out which type of Atlanta mortgage you should opt for.