With a fixed–rate mortgage, clients will know their monthly principal and interest payments upfront.
An ARM offers early payments that are typically lower as compared to a fixed-rate mortgage. An arm may be a good option for clients who only plan to own the property for a short period of time.
For purchases or for a refinance without cash back, financing is available on up to 85% of a home’s value with no mortgage insurance, subject to property type, a required minimum credit score and a minimum amount of monthly reserves.
FHA mortgages offer down payments as low as 3.5%, which can include the use of gift funds. It is not necessary for clients to meet low-to-moderate income requirements for qualification.
VA loans have low or no down payment options available and do not have a mortgage insurance requirement that could result in lower monthly payments compared to other options.
The Traditional Loan process
The Benefits of Owning Versus Renting
Online Resources for Mortgage Education
If the traditional mortgage is not economically helpful to your clients in their senior years, taking advantage of their equity through a reverse mortgage could be helpful later in life.