Teasing out the right home loan from the many available options can seem overwhelming. A qualified lender can help, but it’s important to understand the vocabulary. Here are some home loan terms you should know:
Conventional Loan
When you think of a loan, you probably think of a conventional or conforming loan. An example is the ubiquitous 30-year fixed-rate mortgage. These loans are perfect for buyers with a strong credit history because they are tied more directly to your credit score and down payment. There are several pros to this type of loan:
- If your credit score is high enough, you may not have to put 20 percent down.
- If you choose to put 20 percent down, you won’t need private mortgage insurance (PMI).
- There is usually no upfront mortgage fee.
- Fixed and adjustable-rate mortgages are available.
- You can choose loan terms from 10 to 30 years.
There are some cons:
- If you are approved for a conventional loan with a lower-than-ideal credit history, you may be on the hook for a higher interest rate.
- These loans are not backed by the federal government which means the lender is at more risk. That means the requirements will be more stringent.
Fixed-Rate Mortgage
A fixed-rate loan means that your mortgage rate stays the same throughout the life of your loan. These loans are available on 10-, 15-, 20-, 30- and 40-year terms, but 15 and 30 terms are the most common. Some things to keep in mind:
- 15-year mortgages come with higher monthly payments but usually have lower interest rates and less total interest compared to longer-term loans.
- 30-year mortgages offer lower monthly payments than 15-year mortgages but at higher interest rates. You also will pay more in interest than you would with a 15-year loan.
Adjustable-Rate Mortgage
The initial rate of these loans is fixed for a period of time. Your rate then adjusts to current market rates. The fixed rates are usually quite low, potentially saving you a bundle. You do risk interest rates rising which will cause your monthly payment to rise, as well.
FHA Loan
FHA loans offer prospective homebuyers low down payment requirements, more lenient credit score standards and flexible income guidelines making them an excellent choice for first-time homebuyers. The mortgage is guaranteed by the Federal Housing Administration making them less risky for lenders to offer.
On the pro side:
- You may only need as little as 3 percent of the home price as your down payment.
- Your credit score can be as low as 580 with 3.5 percent down or 500 with 10 percent down.
- 15- and 30-year loan terms are usually available
- Fixed-rate and adjustable-rate mortgages are available.
- Down payment gifts and/or down payment assistance can cover 100 percent of the down payment and closing costs.
On the con side:
- You will need to purchase PMI up front.
- FHA loan limits are lower than conforming loan limits so you might not be able to get the amount you need for the home you want.
VA Loan
If you served in the military, you can qualify for a loan with no down payment whatsoever. Interest rates are lower than standard loans and you do not need to purchase mortgage insurance. Veterans, active-duty service members and surviving spouses are all eligible.
USDA Loan
These loans are intended for low-income to moderate-income home buyers who plan to purchase a home in a rural area. Eligibility requirements are strict, but if you qualify, you will not have to make a down payment or pay for mortgage insurance. Credit scores starting at 640 are eligible. Income limits must be met and a fixed-rate, 30-year term is the only option.
Jumbo Loans
If you have really good credit, a large cash reserve and want to purchase an extremely expensive home, you may be a candidate for a jumbo loan. Jumbo loans are for homebuyers whose loan amount exceeds Fannie Mae and Freddie Mac’s stated loan limits. These loans usually come with higher monthly payments, but the down payment can be as low as 5 percent with some lenders.
How Do You Choose?
Now that you know the basics you can begin deciding. Pick a few that seem right for you. Use this handy mortgage calculator to estimate your monthly payment. Compare them here. Then speak to your lender. It won’t be long before you find the right mortgage, leading you to your perfect home in Sierra Vista.
Skip the chocolates this Valentine’s Day and give your special someone what she really craves — a day of pampering. Where? Any of these great spas near Sierra Vista.
Located less than 30 minutes away, Woodhouse is the ultimate luxury spa. Plush robes, loose-leaf teas, a calming environment and an extensive menu of spa services promote relaxation and well-being. Purchase a single treatment or go all out with one of their signature packages for a day she will never forget.
Professional, luxurious spa services at an affordable price — what could be better? Treat her to a hot stone massage coupled with a cold stone face massage. Or purchase a membership so she can get a massage or facial every month.
Winter skin is no joke. Treat her to a soothing facial surrounded by luxury. The posh day spa provides complimentary wine or spa water and well-appointed spa suites.
Medical spas provide more than massages and facials. Staffed by doctors, they offer an array of cosmetic enhancement services including Botox, micro-needling, Platelet-Rich Plasma (PRP) and Platelet-Rich Fibrin (PRF) treatments and spider vein therapy as well as weight loss help and an IV drip bar.
Help enhance her natural beauty with cutting-edge treatments, including cosmetic injectables, facials, waxing, body contouring, weight loss programs and more.
Start her down the road to self-care with a Massage Envy membership. Members get one 60-minute massage, total body stretch, or customized facial session each month.
Start 2023 right by saving money on the purchase of a new home in Sierra Vista. Some of our builders are offering incentives that will lower your interest rate, pay your closing costs or reduce the price of your new home. Take a look and choose your savings.
Lock in a low 4.99 percent interest rate and save hundreds off your monthly mortgage payment with Davidson Homes. Even better, it’s a fixed interest rate so you will save money every month throughout the life of your loan. Just finance through Davidson Home Mortgage and close by Feb. 3.
Start the new year with a new home and $30,000 in money-saving incentives from Liberty Home Builders. From now until January 31, the builder will give you credit toward your choice of a price reduction, closing costs or a rate buy down.
Raise a toast to 2023 and save money with Meritage Homes. The builder is offering huge incentives when you purchase a select home by Jan. 15 including your choice of up to $10,000 toward price reduction, $10,000 toward closing costs, a 5.99 percent locked in interest rate or a welcome package including a washer, dryer and refrigerator.
A recent survey found that 38 percent of households own at least one smart home device. The same report said that 44 percent of homeowners plan to buy a smart home device this year. Anticipating this trend, manufacturers have come out with all sorts of automated ways to make your life easier. Here are some of the latest trends.
Smarter Kitchens
This year, manufacturers are dedicating themselves to making your kitchen time more efficient with smart appliances. Refrigerators will become the hub of the kitchen allowing you to watch your favorite cooking show, read recipe instructions and show you what’s inside via a touch screen. Some refrigerators can even look at your ingredients and suggest ways to use them. Smart ovens can be connected to Alexa devices so you can pre-heat your oven with just a voice command. Smaller appliances such as coffee makers, air fryers and microwaves will also be voice-activated.
Smarter Bathrooms
Smart devices are moving into the bathroom. At the top of the list is the smart shower head. Program the perfect temperature for each family member, turn on the water with a voice command and sing along to your favorite tune. Automatic toilet cleaners mean you will be scrubbing and disinfecting less. Smart toilets offer hands-free opening and closing as well as automatic flushing.
Automation Moves Outside
Want a beautiful lawn without having to stand outside with the hose? Automated irrigation controls are the answer. Timers hooked up to your wi-fi can automatically turn on the water at set times. If the forecast calls for rain, the timer can automatically pause your scheduled watering.
Wake Up to The Sun
Automatic blinds are poised to get less expensive, meaning everyone can wake up to the sun. Use your digital assistant to set up a bedtime routine that includes shutting the blinds. Set another up to open them at your preferred waking time. Don’t feel like shutting the blinds when the sun glares off the television? Use an app to close them without missing a second of your favorite show.
Retire the Roomba
Move over automatic vacuums. Manufacturers are experimenting with automatic mops. Robot carpet cleaners can get out the toughest stains. Keep the ladder in the garage and use an automatic window cleaner instead.
To Your Good Health
Smart devices can even help you look and feel better. Smart air purifiers can detect levels of particulate matter in the air and adjust the power automatically. Smart diffusers can be scheduled to automatically release calming scents. Your home gym equipment can send information to various apps to track calories burned, oxygen levels and more.
As you prepare for the whirlwind of holiday gatherings, be sure to put purchasing hostess gifts on your itinerary. Hostess gifts are a simple thank you for hospitality. As such, they should be something he or she would use while entertaining. They don’t need to be expensive, but they should be thoughtful. If you aren’t sure what to give, we have some helpful hints.
Serve it Up
The Bambusi Cheese Board and Knife Set is perfect for first-time and experienced hosts. Help them serve up goodies with these essential charcuterie board accessories. They can showcase their desserts with this elegant cake stand. This wooden serving tray is perfect for snacks.
Linens and Things
Cleaning up is part of hosting, but it won’t be a chore with these microfiber dish towels. Keep your hostess’ party dress spotless with a personalized apron. These tea towels combine a love for wine with humor. Perk up their powder bath with these Spode hand towels.
Bring on the Booze Tools
Sure, you could bring a bottle of wine or aged scotch, but your host would probably prefer this Mixology Bartender Kit. You’re sure to be invited to the New Year’s Eve bash if you gift this sophisticated wine cooler. Turn shots into classic cocktails with these special sugar cubes. Shake things up with a cocktail book from one of New York’s most popular bars.
Gift of Games
If you’ve been invited to spend the weekend, help with the entertainment by gifting your favorite game. Anomia is a fast-paced party game that can be played again and again. Young party guests will love taking on the role of winged beasts in Dragon’s Breath. If your host is a bird lover, Wingspan is the perfect game. A cross between Clue and Dixit, Mysterium challenges players to catch a ghost.
Great Gift Baskets
Hosting overnight guests is easier with this delightful breakfast basket. Wine Country Gift Baskets has vintages to fit most budgets. Share the gift of Texas barbecue with these seasoning baskets. Cost Plus World Market offers gourmet miniatures you can add to a DIY gift basket.
For the Chef
Amateur pastry chefs will love adding these baking salts to their latest creations. Spice things up with this unique spice gift set. Nothing is better than homegrown herbs. Peanut butter lovers will go nuts for this gift.
