With interest rates at record lows, first time home buyer and FHA mortgages have been a hot topic with consumers across the country. In the mortgage industry, there are many types of mortgage loans available to home buyers. Some types of loans are better for those with the best credit histories. On the other hand, some types of loans are better for people starting out because they offer a lower payment at first. Then, their payments increase with the duration of the loan. Because most people increase their salaries over time, this is often a better option.
A few years ago, consumers were attracted to the 2/28 Adjustable Rate Mortgage (ARM). This type of loan has a fixed interest rate for the first two years of the mortgage. After those first two years, the interest rate on the loan can increase at any time. This, of course, depends on the overall increase in interest rates in the United States. This type of loan can be great for the first time home buyer because it offers the lowest interest rate at the beginning of the mortgage period. Today with rates at 40-year lows, consumers have migrated towards the 30-year fixed rate mortgage because it offers security and affordability.
Low Rate Loans for First Time Home Buyers
- FHA Mortgages for All Ranges of Credit
- Best Home Purchase Rates Online
- Fixed Mortgage Rates 30-Year
- Approved FHA Lender
Lower payments during the first two years are often needed for first time home buyers. This gives them the opportunity to adjust to the expenses that come with home ownership. In addition, it may allow people who could not afford a home to obtain a piece of the American Dream. FHA first time home buyer loans continue to surge in popularity.
To find out more about home mortgage options for first time buyers, contact Downs Financial. We are a direct lender of home mortgages that services people nationally with all types of credit and financial situations. We can explain the best options and get you into the home you deserve.