Before buying any San Antonio property, you might be wondering about available financing options. Home loans are becoming more popular in the city especially because many homebuyers prefer to obtain any home mortgage in San Antonio to afford the homes they like to purchase.
A home mortgage in San Antonio could be fixed rate or adjustable rate. In a fixed rate, the interest applied is the same from the beginning of the loan payment until its last payment. If the loan maturity is set at 30 years, the interest rate applied should be just one all throughout.
Adjustable interest rate mortgages are more common across the San Antonio property market. This mortgage has changing rates, depending on the economy and on many other factors. The rates could adjust up or down. If rates are dropping, you can find your mortgage going cheaper. Otherwise, you may shoulder the burden of higher rates required.
Conventional and Veterans Administration loans
A conventional mortgage is a traditional loan that may take a term of about 15 years to 30 years. This type of home mortgage in San Antonio may include jumbo loans or conforming loans. Jumbo loans have amounts of $417,000 or more, while conforming types are loans below $417,000.
As the name implies, VA loans are guaranteed partially by the Veterans Administration. The Veterans Administration has recently introduced expansions of its qualifying criteria so that its mortgages include more veterans.
The Federal Housing Administration (FHA) loans are getting more popular in the San Antonio property market. It is administered by the US Department of Housing and Urban Development, along with its various home loan programs. FHA mortgages are more popular as those require lower down payments. A borrower also more easily qualifies in it than in any conventional home loan.
It is possible for these loans to be availed by borrowers with poor credit. In general, FHA mortgages also cost less. It may impose more competitive interest rates especially because such home loans are fully insured by no less than the Federal Government. You may compare it with other loan types to verify this information.
Which type of mortgage available in the city is best for your current financial and credit condition? It is important to obtain approval for financing before buying any home in the city so you could be sure you would not meet any hassle upon making the important home purchase.
Genius Realty – San Antonio is an experienced real estate agency that can help you search for your perfect home in San Antonio, TX and the nearby cities like New Braunfels, Shertz, Live Oak, Alamo Heights, Olmos Park, Canyon Lake, Terrel Hills, Garden Ridge, Seguin, Boerne, Castle Hills, and Stone Oak and Sonterra. Get access to all available homes for sale on and the off MLS in San Antonio and the surrounding areas, regardless of the listing company. Please call 210-436-4877 for all your real estate related needs.
Source: Summit Mortgage.