The time when every mortgage lender offered the same type of loan to every customer has long since passed. Today, both large and small mortgage banks try to customize their loan products to fit their customer’s needs as well as keep the existing and repeat customers happy. For an experienced buyer, the variety of loan products may be easy to navigate, but for someone who is about to enter into a real estate transaction for the first time, the amount of information can easily be overwhelming. And if a mortgage bank refuses to explain their offerings to you – stay away! You will get a better product and better service with an industry leader such as Wyndham Capital Mortgage.
The most common product is probably the fixed-rate mortgage loan, which is a 15- or 30-year loan with a fixed interest rate. This loan has numerous advantages, one of which is its fixed monthly payments, which allows a homebuyer to budget their expenses better. An adjustable rate mortgage loan is another common product, in which the interest rate goes up or down during a given period. The biggest advantage to this type of loan is the interest rates attached are often lower than the fixed rates that come with a fixed-rate loan. This type of loan is often preferred by buyers who know that they will only own the property for a few years. One of the most interesting mortgage products is a hybrid-combo loan. This is a mortgage loan that starts out at a fixed rate and adjusts itself to an adjustable-rate mortgage after a certain period of time. Often buyers who are looking to eventually lower their rate and qualify for higher loan amounts choose the hybrid-combo loan.
An interest-only loan is also a popular product with first-time homebuyers. An interest-only loan means you make payments that are interest-only for the first seven years of your 30-year mortgage loan. The advantage of this loan is low monthly payments however this may also be viewed as a disadvantage. Once the seven-year interest-only term expires, the payments must increase substantially which may change the family’s entire budget. Among other products are minimum-payment loans and zero down mortgages, the latter being government-structured programs specifically created for first-time homeowners who want to buy their homes early without waiting to raise the 20 percent down payment. Whichever option you decide should be carefully considered. Do research, ask questions and choose the best fit for your situation.
Wyndham Capital Mortgage is a respected mortgage bank that has been serving customers of Charlotte, North Carolina for over a decade. Any questions you may have regarding your prospective loan application, interest rates, or the process itself will be answered by their mortgage specialists. As a buyer, you have an array of mortgage loans to choose from, and Wyndham Capital Mortgage will help you choose the mortgage that is right for you.