{"id":4387,"date":"2022-06-30T13:42:55","date_gmt":"2022-06-30T13:42:55","guid":{"rendered":"https:\/\/baycoastmortgage.com\/?p=4387"},"modified":"2023-06-13T21:54:30","modified_gmt":"2023-06-13T21:54:30","slug":"more-than-one-type-of-mortgage-know-your-options","status":"publish","type":"post","link":"https:\/\/baycoastmortgage.com\/en\/insights\/more-than-one-type-of-mortgage-know-your-options\/","title":{"rendered":"More Than One Type of Mortgage: Know Your Options"},"content":{"rendered":"<div class=\"lazyblock-resource-hero-1hBvQV wp-block-lazyblock-resource-hero\"><div class=\"noHero\" style=\"height: 10rem;\"><\/div>\n\n<div class=\"spacer\"><\/div>\n\n<div class=\"section\">\n\t<div class=\"smallWrapper gutenberg\">\n\t    \n\t    <div class=\"categories flex\" style=\"justify-content: flex-start;\">\n\t\t\t<div class=\"h6\" style=\"margin-right: 2rem;\"><a href=\"https:\/\/baycoastmortgage.com\/resource\/insights\">Insights<\/a><\/div>\n\t\t\t\t\t\t\n\t\t\t<div class=\"primaryColor dot h6\" style=\"transform: scale(2.2); \">\u00b7<\/div>\n\n\t\t\t<div class=\"h6\" style=\"margin-left: 2rem;\">\t\t\t\tJune 30, 2022        \n\t\t\t<\/div>\n\t\t<\/div>\n\t    \n\t    <h1 class=\"h2 blue bgWhite\" style=\"max-width: 50rem\">More Than One Type of Mortgage: Know Your Options<\/h1>\n\t    \n\t    <hr style=\"margin-bottom: 7rem;\">\n\t  \n\t<\/div>\n\t\n\t<div class=\"wrapper\" style=\"justify-content: center; max-width: 90rem;\">\n\t\t<div style=\"width: 100%; position: relative;\">\n\t\t\t<img decoding=\"async\" data-src=\"https:\/\/baycoastmortgage.com\/wp-content\/uploads\/2022\/06\/More-Than-One-Type-of-Mortgage-Resource-1.jpg\" role=\"img\" aria-label=\"More Than One Type of Mortgage: Know Your Options\" style=\"--smush-placeholder-width: 1200px; --smush-placeholder-aspect-ratio: 1200\/800;width: 100%; height: auto;\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" class=\"lazyload\" \/>\n  \t\t<\/div>\n\t<\/div>\n<\/div>\n\n          <\/div>\n\n<div class=\"lazyblock-interior-content-25JTLA wp-block-lazyblock-interior-content\"><div class=\"spacer\"><\/div>\n\n<div class=\"section\">\n\t<div class=\"paddedWrapper\">\n\t\t<div class=\"wrapper flex gutenberg\" style=\"justify-content: center;\">\n\n\t\t\t\n\t\t\t<div class=\"smallWrapper gutenberg\">\n\n\t\t\t\t<div class=\"h3\">When buying a home, unless you have all the money up front, chances are you\u2019ll need a mortgage to make that important purchase.  But what exactly is a mortgage?<\/div>\n\n\t\t\t  \t<hr style=\"margin-bottom: 5rem;\">\n\n\t\t\t\t<!-- interior content -->\n\t\t\t\t\n\n<p>At its simplest level, a mortgage is a loan you use to buy a home or other piece of real estate. The property itself serves as collateral for the loan.&nbsp; Mortgages are available in a variety of types, including fixed-rate and adjustable-rate.&nbsp; So, how do you know which mortgage is right for you? The following list provides just a few examples of some of the most popular types of mortgage loans available to borrowers.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Conventional Loans<\/strong><\/h4>\n\n\n\n<p>Conventional loans are the most common type of mortgage loan. A conventional mortgage originates with a private lender, such as a bank or credit union. Conventional loans are broken down into conforming and non-conforming loans, depending on whether or not they conform to guidelines set by the <a href=\"https:\/\/www.usa.gov\/federal-agencies\/federal-national-mortgage-association-fannie-mae\" target=\"_blank\" rel=\"noopener\">Federal National Mortgage Association (Fannie Mae)<\/a> and the <a href=\"https:\/\/www.usa.gov\/federal-agencies\/federal-home-loan-mortgage-corporation-freddie-mac\" target=\"_blank\" rel=\"noopener\">Federal Home Loan Mortgage Corporation (Freddie Mac)<\/a>. <\/p>\n\n\n\n<p>Fannie Mae and Freddie Mac are companies originally chartered by Congress to help provide stability and affordability in the housing market. &nbsp;For a conventional loan, borrowers generally need to meet a list of requirements to qualify.&nbsp; These requirements may include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Having a good credit score, typically over 620<\/li>\n\n\n\n<li>The ability to make a down payment of at least 20%\n<ul class=\"wp-block-list\">\n<li>If a buyer\u2019s down payment is less than 20%, they will be required to pay private mortgage insurance (PMI).<\/li>\n\n\n\n<li>PMI protects mortgage investors in case you default on your loan.<\/li>\n\n\n\n<li>The cost of PMI will vary, depending on your loan type, your credit score and the amount of your down payment.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Not having too much debt, typically under a 43% debt-to-income ratio<\/li>\n\n\n\n<li>No history of bankruptcies or foreclosures<\/li>\n<\/ul>\n\n\n\n<p>Conventional loans are typically repaid over a 30-year term, but it\u2019s possible to qualify for a 15 or 20-year conventional mortgage loan.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Jumbo Loans<\/strong><\/h4>\n\n\n\n<p>The Federal Housing Finance Authority (FHFA) sets guidelines for government-backed mortgages, including a limit on the total amount of the loan. A <a href=\"https:\/\/baycoastmortgage.com\/loans\/conventional-jumbo\/jumbo-loans\/\">jumbo loan<\/a> is a mortgage used to finance properties that exceed the qualifications for a conventional conforming loan.&nbsp; Due to the larger size of the loan, the bar to qualify for a jumbo loan is even higher for borrowers: they need higher credit scores, lower debt-to-income ratios, and more cash in the bank. <\/p>\n\n\n\n<p>Jumbo mortgages can also mean a bigger down payment, higher closing costs, and slightly higher interest rates. In other words, you have to pay more for the privilege of a more expensive purchase. But if your dream house has a higher price tag and you qualify, a jumbo loan may be the way to go.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Government Loans<\/strong><\/h4>\n\n\n\n<p>The federal government wants to make sure that more Americans can become homeowners, so they insure lenders who provide mortgages for what may be considered traditionally riskier borrowers. The <a href=\"https:\/\/baycoastmortgage.com\/loans\/government-programs\/fha-loans\/\">Federal Housing Authority (FHA)<\/a> lends to borrowers with less money in the bank, the <a href=\"https:\/\/baycoastmortgage.com\/loans\/government-programs\/usda-loans\/\">United States Department of Agriculture (USDA)<\/a> lends to rural borrowers, and the <a href=\"https:\/\/baycoastmortgage.com\/loans\/government-programs\/va-loans\/\">Department of Veterans Affairs (VA)<\/a> lends to military veterans. These government-insured mortgage programs may require smaller down payments or lower credit scores than conventional mortgages. However, the government does place limits on a borrower\u2019s income and the price of the home.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Fixed-Rate Mortgages<\/strong><\/h4>\n\n\n\n<p>A <a href=\"https:\/\/baycoastmortgage.com\/loans\/conventional-jumbo\/fixed-rate-loans\/\">fixed-rate mortgage<\/a> features an interest rate that doesn\u2019t change over the life of the loan. If the rate was at 5.750% when the loan began, then the rate will still be 5.750% 30 years later. That also means your monthly mortgage payment won\u2019t change either. &nbsp;Fixed-rate mortgages are generally best for buyers who want to live in their home for the long-term.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Adjustable-Rate Mortgages (ARMs)<\/strong><\/h4>\n\n\n\n<p><a href=\"https:\/\/baycoastmortgage.com\/loans\/conventional-jumbo\/adjustable-rate-loans\/\">Adjustable-rate mortgages<\/a> (ARMs) usually offer a lower initial interest rate than fixed-rate mortgages, but only for the first few years of the loan. &nbsp;For example, a 5\/1 adjustable-rate mortgage offers an initial low rate for the first five years of the loan. After that, the rate will adjust once per year based on the current market rate.<\/p>\n\n\n\n<p>Adjustable-rate mortgages may offer caps on how high or low the rate can go, in order to protect the borrower and lender. &nbsp;Because an adjustable-rate mortgage will change over the life of the loan, this type of mortgage may be best suited for a homeowner plans to sell the home within the first few years of the purchase.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Contact Us<\/strong><\/h4>\n\n\n\n<p><a href=\"https:\/\/baycoastmortgage.com\/\">BayCoast Mortgage Company<\/a> is a full-service lender providing industry-best solutions in residential purchase, refinance, renovation and construction loans.&nbsp;<\/p>\n\n\n\n<p>Our <a href=\"https:\/\/baycoastmortgage.com\/loan-officers\/\">lending experts<\/a> are ready to help you find the mortgage that best suits your needs and lifestyle. For more information or to schedule an appointment, please contact us at 508-646-0800 or call toll free at 877-466-2678.&nbsp; <\/p>\n\n\n\t\t\t<\/div>\n\n\t\t<\/div>\n\t<\/div>\n<\/div>\n<\/div>\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>When buying a home, unless you have all the money up front, chances are you\u2019ll need a mortgage to make that important purchase. But what exactly is a mortgage?<\/p>\n","protected":false},"author":10,"featured_media":4393,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[2],"class_list":["post-4387","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insights"],"acf":[],"featured_image_urls_v2":{"full":["https:\/\/baycoastmortgage.com\/wp-content\/uploads\/2022\/06\/More-Than-One-Type-of-Mortgage-Resource-1.jpg",1200,800,false],"thumbnail":["https:\/\/baycoastmortgage.com\/wp-content\/uploads\/2022\/06\/More-Than-One-Type-of-Mortgage-Resource-1-150x150.jpg",150,150,true],"medium":["https:\/\/baycoastmortgage.com\/wp-content\/uploads\/2022\/06\/More-Than-One-Type-of-Mortgage-Resource-1-300x200.jpg",300,200,true],"medium_large":["https:\/\/baycoastmortgage.com\/wp-content\/uploads\/2022\/06\/More-Than-One-Type-of-Mortgage-Resource-1-768x512.jpg",768,512,true],"large":["https:\/\/baycoastmortgage.com\/wp-content\/uploads\/2022\/06\/More-Than-One-Type-of-Mortgage-Resource-1-1024x683.jpg",1024,683,true],"1536x1536":["https:\/\/baycoastmortgage.com\/wp-content\/uploads\/2022\/06\/More-Than-One-Type-of-Mortgage-Resource-1.jpg",1200,800,false],"2048x2048":["https:\/\/baycoastmortgage.com\/wp-content\/uploads\/2022\/06\/More-Than-One-Type-of-Mortgage-Resource-1.jpg",1200,800,false],"gform-image-choice-sm":["https:\/\/baycoastmortgage.com\/wp-content\/uploads\/2022\/06\/More-Than-One-Type-of-Mortgage-Resource-1.jpg",300,200,false],"gform-image-choice-md":["https:\/\/baycoastmortgage.com\/wp-content\/uploads\/2022\/06\/More-Than-One-Type-of-Mortgage-Resource-1.jpg",400,267,false],"gform-image-choice-lg":["https:\/\/baycoastmortgage.com\/wp-content\/uploads\/2022\/06\/More-Than-One-Type-of-Mortgage-Resource-1.jpg",600,400,false]},"post_excerpt_stackable_v2":"<p>When buying a home, unless you have all the money up front, chances are you\u2019ll need a mortgage to make that important purchase. But what exactly is a mortgage?<\/p>\n","category_list_v2":"<a href=\"https:\/\/baycoastmortgage.com\/en\/.\/insights\/\" rel=\"category tag\">Insights<\/a>","author_info_v2":{"name":"BayCoast Marketing","url":"https:\/\/baycoastmortgage.com\/en\/author\/marketingbaycoastbank-com\/"},"comments_num_v2":"0 comments","publishpress_future_action":{"enabled":false,"date":"2026-04-10 19:51:55","action":"change-status","newStatus":"draft","terms":[],"taxonomy":"category","extraData":[]},"publishpress_future_workflow_manual_trigger":{"enabledWorkflows":[]},"_links":{"self":[{"href":"https:\/\/baycoastmortgage.com\/en\/wp-json\/wp\/v2\/posts\/4387","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/baycoastmortgage.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/baycoastmortgage.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/baycoastmortgage.com\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/baycoastmortgage.com\/en\/wp-json\/wp\/v2\/comments?post=4387"}],"version-history":[{"count":0,"href":"https:\/\/baycoastmortgage.com\/en\/wp-json\/wp\/v2\/posts\/4387\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/baycoastmortgage.com\/en\/wp-json\/wp\/v2\/media\/4393"}],"wp:attachment":[{"href":"https:\/\/baycoastmortgage.com\/en\/wp-json\/wp\/v2\/media?parent=4387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/baycoastmortgage.com\/en\/wp-json\/wp\/v2\/categories?post=4387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}