Many buyers believe that they're limited to just one type of home loan—but in reality, there are hundreds of options available to suit your unique needs. Mortgages are hardly a "one size fits all" deal, which means it's important to shop around and find a loan that's a good fit for you.
If you're thinking about making a move to the Mount Pleasant area, I'd love to help you find the right mortgage or offer some lender recommendations. Here's some essential information you need to know before you get started.
Figure Out How You'll Pay Interest
Mortgages are much more customizable than you might think. In fact, you can even choose how you'll pay off your interest and whether or not the rate will fluctuate over time. Here are some of the most common types to consider:
Fixed Rate Mortgage
- The interest rate does not fluctuate
- Payments remain the same as you pay off the loan
- Very predictable
Adjustable Rate Mortgage
- The interest rate starts low, then changes to match current rates
- Rates can increase or decrease
- Your monthly payment may fluctuate
Two-Step Mortgage
- Also called 5/25s or 7/23s
- Offers an initial fixed rate for the first 5 or 7 years, then changes to match current rates
- Can be converted into a fixed-rate loan or automatically become an ARM
Select Your Loan Type
Now that you know a bit more about the different types of interest, it's time to take a closer look at mortgages. Here are a few of the most popular home loans used by buyers in Mount Pleasant:
Conventional Loan
- Usually last for 15 or 30 years
- Can be fixed-rate or adjustable
- Often requires great credit, sound financial history, and a 20% down payment
USDA Rural Loan
- Only available in rural areas
- Have a down payment as low a 0%
- Targeted towards buyers with a "steady, low, or modest income"
FHA Loan
- Flexible credit and income requirements
- 3 – 5% down payment options
- May be subject to higher interest rates or mortgage insurance
VA Loan
- Available to most active duty military and veterans
- Pay as little as 0% down with no mortgage insurance
- Can require a one-time funding fee
Balloon Mortgage
- Payments are based on a 30-year loan, but are paid over 5 – 7 years
- At the end of the term, the borrower must pay off, refinance, or convert the loan
- Can have lower interest rates and credit requirements
Shared-Appreciation
- Buyers get lower rates, but must share some of the profits with their lender if they sell
- The buyer loses out on equity in the long run to pay the lender
- Can be helpful for low-income buyers
SC Housing Programs
- Competitive, fixed-rate loans for first-time homebuyers
- Requires at least a 3.5% down payment
- May offer forgivable down payment assistance up to $6,000
Lender-Specialty Loans
- Many banks or lenders offer specialty loan programs
- May feature lower down payments or credit requirements
- Can help first-time or low-to-moderate income buyers
Calculate Your Mortgage
Ready to start crunching some numbers? My mortgage calculator makes it easy to estimate your potential monthly payments—and if you have any questions, I'm only a phone call, email, or text away.
Mortgage Calculator