Mortgage Lenders Houston | Top Rated Mortgage Company
At Texas Premier Mortgage, our goal is to provide timely, accurate information to help you find the ideal mortgage. Our team is here to listen to your questions and craft solutions that meet your short and long-term financial goals.
There isn’t a single or simple answer to this question. The ideal mortgage for you depends on many different factors:
- Your current financial profile
- Expected financial changes
- How long do you intend to keep your house
- How comfortable you are with your monthly payment changing
For example, a 15-year fixed rate mortgage can save you thousands of dollars in interest payments over the life of the loan.
The best way to find the “right” solution is to discuss your finances and intentions with a mortgage professional.
Fixed Rate Mortgages
This is the most popular option for homeowners. As the name suggests, the interest rate on the mortgage is fixed for the life of the loan.
Pros:
- Rate is guaranteed. You are protected in a rising rate environment.
- No increases in P&I payment over the life of the loan. Get comfortable with payment over time.
Cons:
- Lower payment options exist with non-fixed rate products.
Adjustable Rate Mortgages (ARMs)
ARMs have played a significant role in the expansion of homeownership across America. By offering lower initial payments, buyers find they can afford more “home” with an ARM.
Pros:
- Lower rates than fixed-rate products. This equates to lower monthly payments in the early years of the mortgage.
- You may qualify for a larger loan amount which expands the inventory of affordable homes.
- If rates drop, your ARM could adjust downward resulting in lower payments.
Cons:
- There is risk with adjustable features such as rate caps, index, and margin.
- Potential rate increases in the future. ARM rates can adjust at predetermined intervals. Failure to plan for this can lead to payment shock.
- Lifetime caps are typically as high as 5% or 6% over the initial interest rate. Analyze your situation and how that could impact your finances.
Jumbo mortgages are loans that exceed the allowable loan limits set by the FHFA (Federal Housing Finance Agency). Currently, the maximum “conforming” loan amount is $647,200 in Texas.
FHA Mortgages
An FHA loan is a mortgage loan insured by the Federal Housing Administration. FHA loans allow for enhanced credit features and lower down payment, making it an affordable option. Down payment may be in the form of a gift.
Qualified individuals are eligible for 100% financing thanks to the Loan Guaranty program from the Department of Veteran’s Affairs. HOME is proud to service our military homebuyers.
Rural Housing Mortgages
Insured by USDA, this 100% financing program is available in areas designated ‘rural’. Rural housing has enhanced credit features with no out-of-pocket funds required. This product has income and geographical restrictions.
Contact us for your next home loan, we look forward to speaking with you!
