FHG Capital prides itself on supporting people who are looking for honest, reliable funding solutions. Below you will find some answers that will help you on your journey. If you have any questions, feel free to contact FHG Capital at (800) 527-7040 for a no obligation consultation. We are here to support you!
What Is a 30-Year Fixed-Rate Mortgage?
A 30-year fixed-rate mortgage is a long term mortgage option, spanning 30 years, with the same interest rate for the entire life of the mortgage. Due to this, homeowners with a 30-year fixed-rate mortgage will have payments that stay the same, allowing them to know exactly how to budget their finances every month.
Is a 30-Year Fixed-Rate Mortgage Right For You?
To decide if a 30-year fixed-rate mortgage is right for you, ask yourself these four things:
- How Long Are You Planning On Staying In Your Home?
If you're considering getting a 30-year fixed-rate mortgage, you should also be planning on staying in your home for more than 5-7 years.
- Do You Prefer Your Monthly Mortgage Payment To Stay The Same?
30-year fixed-rate mortgages are famous for having an interest rate that doesn't change for the entire life of the loan, keeping your mortgage payments the same month-after-month, for 360 months.
- Do You Want a Low Mortgage Payment?
Due to the long nature of this loan, a 30-year fixed-rate mortgage makes your monthly mortgage payments more affordable in comparison to shorter length fixed rate mortgages (like a 15-year fixed-rate mortgage). You end up paying more interest over the 30 years, but the principal repayment is spread over that same time period, which gives you more manageable payment amounts.
- Are You Purchasing or Refinancing?
This mortgage option is great if you're looking to buy a new home. However, if you're looking to refinance your home that you already own at a lower rate, a 30-year mortgage may be too long for you. You may want to consider a shorter fixed mortgage term based on how much you can afford and what your mortgage refinancing goals are.
A 30-year fixed-rate mortgage gives peace of mind to home buyers who choose it, whether they are first-time home buyers or just don't want to worry about fluctuating mortgage payments.
Did You Know?
As with most amortized loans, you pay off more interest (than principal) at the beginning of the 30 years of your fixed-rate mortgage. As you pay your mortgage over time, this will slowly switch and you'll reach a point where you'll be paying more off in principal than interest.
What this means is as you first pay off your 30-year fixed-rate mortgage, your principal balance won't decrease very much in the first couple of years, due to you paying off, mainly, interest. Once you begin paying off more principal in the later years, you'll see your mortgage balance decrease faster.
Why Trust FHG Capital With Your 30-Year Fixed-Rate Mortgage?
We'll save you more money. FHG Capital can offer you low interest rates in comparison to our competitors. We have helped a tremendous number of Floridians find the perfect home loan option for them. Call us at (800) 527-7040! We'd love to assist you too!
Use a Home Equity Conversion Mortgage for Purchase to buy a new home if:
- The youngest homeowner is 62 or older
- The purchased home will be occupied within 60 days of closing
- The purchased home will be the primary residence
- No mortgage loan other than the HECM will be used to purchase the home
- The difference between the purchase price of the home and the HECM proceeds will be paid in cash from the sale of an existing home or another source of funds
Example – Selling An Existing Home
- A single man, age 62, recently had his home appraised for $250K and still owes $50K; meaning his home equity is now at $200K.
- He finds a home for $300K he wants to purchase
- With his age, he is eligible to borrow about $165K on the new property
- He decides to buy the new property using $200K from the HECM for Purchase and keeps the $65K left over in a reverse mortgage credit line
- He now owns his new property and does not have to pay any mortgage payments
Example – Paying Cash
- A single woman, age 70, rents a home but has saved $100K to buy a property
- She finds a home that is $250K so she is short $150K
- She decides that HECM for Purchase is her best option. At her age she can borrow around $150K on the $250K home
- Taking the full $150K and her $100K savings, she buys the home
- She now owns the home and has no mortgage payments
- If the cash is a gift, it is not acceptable
- If the homeowner is using cash, the cash must be seasoned 60 days
- There must be proof that the homeowner has “eligible funds” for the closing and any of these documents must be provided
- Letter of Verification of Deposit from the bank
- Proof of liquidation of retirement assets
- Deed of Sale
- HUD1 Home Sale Statement
The Property Must Be a Primary Residence and Can Be:
- 1 to 4 units
- Approved Condominiums
- Approved Manufactured Homes
Ineligible Property Types Include:
- Homes without a Certificate of Occupancy or equivalent
- Boarding house
- Bed and Breakfast establishments
- Existing manufactured homes built before June 15, 1976
- Existing manufactured homes built after June 15, 1976 that does not conform to the manufactured home construction safety standards or lack a permanent foundation
If Repairs Need To Be Done On The Home, Major Repairs Must Be Taken Care Of Before The Transaction Can Close:
- Critical health, safety and structural integrity issues must be repaired
- Repairs must be completed by seller prior to closing
- The buyer can not pay for any repairs before they own the home
- The repairs must be included in the purchase agreement
With a HECM for Purchase the usual costs associated with selling and buying a property apply as well as the normal reverse mortgage fees.
Fixed rate reverse mortgage
The fixed rate programs are defined by each lender and are not indexed to the public. To determine the currently available fixed rate, you must ask a reverse mortgage lender for a good faith estimate.
Adjustable rate reverse mortgage
Adjustable rate reverse mortgage have interest rates that change as the market interest rate index changes. The index most commonly used today is the LIBOR, the London Inter Bank Offered Rate. This is an international rate instead of a US focused index.
FHG Capital is a leading provider of Federally Backed Reverse Mortgages
Reverse Lending enables Senior Homeowners 62 years and older to convert part of their home equity into cash. This is possible without having to sell their home or give up title. Many Seniors can eliminate mortgage payments completely. Instead of making monthly payments your lender, the reverse mortgage lender makes payments to you.
What's the Difference Between a Traditional Mortgage and a Reverse Mortgage?
- No Servicing Fees
- No Funding Fees
- No Out-of-Pocket Cost
- No Hassle, No Stress
Home loans fall into two categories based on their loan amount: conforming and jumbo loans. If you need a home loan that's over the conforming limit of $417,000, you will probably need to get a Jumbo mortgage.
Jumbo loans offer the same flexibility as conforming loans, however the only difference is that they are not eligible for purchase by Fannie Mae or Freddie Mac and must be sold in the secondary market. This means that the rates for Jumbo loans will be slightly higher than home loans with similar terms that are conforming loans. Sometimes you may hear Jumbo loans referred to as non-conforming loans.
Who Should Get A Jumbo Mortgage?
If you are able to afford a more expensive home, but haven't saved up enough money to bring the loan down to conforming limits, a jumbo loan is a great option for you.
If you're looking to find your "forever" home, and know that as time goes on your income will increase, a Jumbo loan could be an affordable home loan option for you. This may be a good way to bypass the "starter home" and prevent you and your family from moving at a later date to a bigger home.
Perhaps you've found the perfect home, but it just happens to be in a neighborhood where all the homes are highly priced. A jumbo loan may be the only option you have in order to buy a home due to the high-value real estate in the area.
Things You Should Know About a Jumbo Loan
A jumbo mortgage is a great way to rapidly build you credit. By making your payments on time, you'll quickly see your credit score improve.
Due to the large amount of a jumbo loan, it may be more expensive to refinance a jumbo mortgage, mainly because of higher closing costs.
How Can FHG Capital Help You With Your Jumbo Loan?
At FHG Capital, we work hard to maintain solid customer satisfaction. That's because we were founded on the basis of bringing low rates, great communication and excellent service to all of our clients.
With our ready availability and tremendous experience, we will help get you the home loan that's right for you in an efficient and comfortable way.