What Type of Home Loans in Tucson Are Right For You?

by | Dec 30, 2013 | Business

Buying a home is a major purchase, perhaps the largest purchase you will ever make. Being a homeowner is great feeling, but it comes with some responsibility. First and foremost, you have to figure out how best to pay for your investment. There are various types of loans available, each with its own ups and downs. Fixed-rate mortgages will have a fixed rate of interest that will stay the same for the length of the loan. This type of loan has a huge advantage because you know what you will be paying each month, but if at any time interest rates fall, your home loans in Tucson will still be locked in at that higher rate. Adjustable-rate mortgages, on the other hand, have an interest rate that fluctuates after an initial period, so your mortgage payments will also fluctuate. While interest rates can go down and your mortgage payments with it, this is not likely to happen. Getting an adjustable-rate mortgage can be a smart move if you’re only going to be in the home a short time, and plan to sell the home before the interest adjusts.There are also government backed Home Loans in Tucson that are available such as FHA Loan & VA Loans. FHA loans can allow those with less than perfect credit to obtain a home loan. The home can be obtained with a low down payment and are insured by the Federal Housing Administration. The downside to FHA loans is that the size of loan can be extremely limited.VA loans are for members of the military and surviving spouses. VA loans can offer competitive rates and finance the entire purchase of the home, meaning no down payment. The disadvantage of using this method is that the loan amount itself may be quite limited, which will severely slim down your available options unless a down payment is made.Whatever loan option you choose, be sure to think about how it will impact your finances in the future. With a typical home loan you will be making mortgage payments for 30 years, so make sure you get a rate that you will be able to afford for the long haul.

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