Looking to buy a new home or refinance your current one? It doesn’t matter if your first child is on the way and you need more space, or if your last kid is headed off to college and you want to downsize, KS StateBank may have a home loan solution for you.
We know that sometimes the thought of getting a new mortgage or refinancing can seem overwhelming. That’s why we’ve compiled some useful resources for you to use while researching your options and working through the process. Add in our highly energetic team of mortgage loan originators ready to help you navigate the home-buying process, and you’ll be well on your way in no time.
One of the first things to think about in the home buying process is whether you want a fixed rate loan or an adjustable rate loan. Once you know which of these options is right for you, you can then begin to look at different loan programs that fit your particular situation.
Fixed Rate Mortgages (FRM)
The most common type of loan option, the traditional fixed-rate mortgage includes monthly principal and interest payments which never change during the loan’s lifetime. Escrows for taxes and insurance may change and increase the monthly payment amount.
Adjustable Rate Mortgages (ARM)
Adjustable-rate mortgages include interest payments which shift during the loan’s term, depending on current market conditions. Typically, these loans carry a fixed-interest rate for a set period of time before adjusting.
Components of an ARM
Prior to choosing a home loan, you should know the advantages and risks of adjustable-rate mortgages to make an informed, prudent decision.
Commonly Used Indexes for ARMs
This article includes a list of the most commonly used indexes by ARM lenders that affect ARM mortgage rates.
Mortgages not guaranteed or insured by any government agency, such as Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA), are known as Conventional home loans. Conventional loans typically have fixed terms and rates. Conventional loans that conform to guidelines established by Fannie Mae and Freddie Mac are called “conforming” mortgages. Loans that do not conform to government-sponsored enterprises are called “ non-conforming” home loans. All conforming and non-conforming mortgages are also conventional loans.
Jumbo loans are home loans that exceed Conventional conforming loan limits set by the two government-sponsored enterprises, Fannie May and Freddie Mac. KS StateBank offers Fixed Rate, ARMs, and interest-only ARM Jumbo loans, and may lend up to $3,000,000 (inquire directly regarding higher loan amounts). Speak to a KS StateBank Mortgage Loan Originator to learn more about available loans that exceed conventional loan limits in your area.
VA loans are mortgages guaranteed by the Department of Veteran Affairs. These loans offer military veterans exceptional advantages, including competitive interest rates and no down payment requirement. This program was designed to help military veterans realize the American dream of home ownership.
FHA home loans are mortgages which are insured by the Federal Housing Administration (FHA), allowing borrowers to get low mortgage rates with a minimal down payment.
USDA/Rural Development Loans
A government home loan program that allows 100% financing on properties in select areas.
FHA 203k Renovation Loans
This low down payment, government-backed loan program is designed for homes that are damaged, in need of rehabilitation or that just require some minor updates. With one loan, borrowers can cover the cost of the property and the cost of necessary home repairs.
Fannie Mae HomeStyle® Renovation Loans
Similar to the FHA 203k program, this loan allows borrowers to have one loan that includes the purchase price of the home plus renovations. This program, however, offers other distinct advantages, including the following:
What kind of loan program is best for you?
Should you get a fixed-rate or adjustable rate mortgage? A conventional loan or a government loan? Deciding which mortgage product is best for you will depend largely on your unique circumstances, and there is no one correct answer.