People purchasing a home for the first time may not know about the different options that exist for first-time home buyers. In addition, people who have previously purchased a home may not know which alternate mortgage loan types are currently available.
This article will briefly discuss a few different options for making a down payment on a mortgage, as well as help potential buyers, find the best mortgage companies in the Kansas City area. Read on to learn more.
3 Options Available from Mortgage Companies in Kansas City Area
Mortgaging a home is simply setting up a financing plan for the home and often some of the associated costs, such as closing costs. These are the most common options offered by mortgage companies in the Kansas City area.
1. Fixed-Rate Mortgages
This is the standard way to write a mortgage loan. The interest rate is fixed for the duration of the loan, and the most common mortgage loan periods are for 15, 20, and 30 years.
This approach works best for buyers who intend to be in their home long-term, locking themselves in at palatable interest and monthly payment rates that will become greater bargains as the market price of the home increases.
2. Adjustable-Rate Mortgages (ARMs)
As the name suggested, ARMs fluctuate periodically in conjunction with a mortgage index attached to the loan. The interest rate on this type of loan is also known as the fully-indexed interest rate, and one benchmark would be the prime lending rate.
This type of loan better serves experienced home-buyers who have a familiarity with market indices, and who may want to take on an ARM as a way to leverage against anticipated rising interest rates.
3. FHA Loans
FHA loans are issued by the U.S. government and are made for first-time buyers who may be able to put together a substantial down payment.
In fact, first-time home buyers can make down payments as small as 3.5% of the total loan, a far cry from the 20% figure that many experts consider ideal.
Moreover, FHA loans work well for people with poor or marginal credit scores, can use donations or gift money to from the seller to help fund the loan, and can get additional funding for repairs via the FHA 203K program.
A good mortgage company can construct a plan that works best for you, helping a borrower find the type of mortgage loan that works best for a person’s financial situation. The key is to work with a trusted, experienced mortgage company.
Finding the Best Mortgage Companies in the Kansas City Area
A1 Mortgage is owned and operated by veterans, and provides the same high-quality service via our website, over the phone, or in person at our local office. We do everything we can to make the home-buyer process simple and straightforward, particularly for first-time buyers.
Buyers looking for the best mortgage companies in Kansas City area will want to take a close look at A1 Mortgage, as the team at A1 Mortage works together to ensure that everyone involved has a great experience before, during, and after the completion of the loan process.
Other reasons to consider A1 Mortgage include:
- We offer no out-of-pocket closing costs.
• Clients work with a single loan officer and develop a trusting relationship.
• The process is completed locally in our office in Kansas City, MO.
• We guarantee a low, highly-competitive interest rate.
• Buyers can be approved in an hour or less and can close on their home within ten days.