When applying for a mortgage, there are certain basic rules that govern the length of the loan and how the interest rate of the loan might change over time. Regardless of whether you have bad credit, these terms are standard across all home mortgages. However, there are some options that are better for those trying to get a fresh start with their credit.
The first type of loan is the fixed loan. This loan has an interest rate that remains the same over the entire length of the mortgage. You do not have to worry about your mortgage payments going up in a few years. However, because the loan will remain the same for 15, 20, or even 30 years, the interest rate may be a slightly higher than other options.
For those who want or need a lower payment at first, an adjustable rate mortgage might be better. This type of loan starts out with a lower interest rate, usually for the first two to five years. After that, the interest rate of the mortgage can increase to a fixed limit at certain intervals. The beauty of this is that the payments are usually less in the first few years as you are starting out.
These are just a couple of the options that are available from Downs Financial. In order to determine what is best for your unique situation, simply complete our easy registration form. Within 15 minutes, you will receive a call from one of our experienced loan officers. We can help you get that bad credit mortgage you need.
