Home Loan Mortgage Choices for your Next Home - Video Tutorial

Home Loan Mortgage Choices for your Next Home - Gaurav Bhola from Garv Financial on Vimeo.

TUTORIAL TEXT

Welcome to Garv Financial.
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This is Gaurav Bhola and the tutorial is about “Home Loan Mortgage Choices for your Next Home.”

This tutorial covers the several types of mortgage loans.

The following are commonly offered home loan choices:

• Fixed-Rate Mortgages
• Jumbo Loans
• Adjustable Rate Mortgage (ARM)
• Interest-Only Mortgage Loans
• 100% Financing
• Conforming Loans
• Conventional Loans
• Second Mortgages
• Subprime Mortgages
• Hybrid Mortgages
• Government Loans

Fixed-Rate Mortgages
You get fixed interest rate for the term of the home loan The mortgage payments stay the same for the tenure of the loan’s term. This provides you protection against any rise in future mortgage rates. You may want to evaluate mortgage refinancing if mortgage rates are lower than your existing home loan interest rate.

Jumbo Loans
Mortgage loan amounts that are above Fannie Mae and Freddie Mac loan limits. Also known as non-conforming loans. Usually, subject to interest rate pricing premium.

Adjustable Rate Mortgage (ARM)
Comes with lower initial interest rates compared to fixed-rate home loans. Your initial interest rate is fixed for a certain period of time then it becomes variable. Then the interest rate readjusts periodically.
Interest-Only Mortgage Loans

You have the autonomy to pay only interest on the mortgage in monthly payments for a fixed term, commonly 5 to 7 years. After which, you can pay off the mortgage balance, refinance, or begin paying off the principal at the end of the interest only payment period.

100% Financing
You require zero down payment, complete home financing is provided. However, in order to get the home loan, a credit score of 620 or higher is needed.

Conforming Loans
Mortgages qualified for purchase by either Fannie Mae or Freddie Mac. The loan limits are reviewed annually, changed limits reflect changes in national mean price for single family homes

Conventional Loans
Home loans not insured or guaranteed by the federal government. Requires a higher down payment on the loan compared to a guaranteed government loan. Interest rates mostly exceed FHA and VA loans.

Second Mortgages
Mortgage loan taken out after the first mortgage. Second mortgages are secured against the same asset as the primary home loan. Mortgage is based on the equity or ownership interest in the residence, commonly known as Home Equity Line of Credit or HELOC. HELOCs are mainly used for college tuition, home improvements, debt consolidation and other purposes

Subprime Mortgages
Home loans are for consumers who can’t meet prime financing criterion. Subprime mortgages have higher interest rates than conventional mortgages due to the higher associated risk.

Hybrid Mortgages
Hybrid loans are a combination of fixed interest rate mortgage and an adjustable rate mortgages (ARM). For a certain term, the hybrid loan has a fixed rate after which it becomes an ARM.

Government Loans
Mortgages guaranteed or insured by the federal government

My name is Gaurav Bhola.
Thank you, very much for watching the tutorial on “Home Loan Mortgage Choices for your Next Home.” More financial tutorials are available at GarvFinancial.com.

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