Of course, you don’t need to fall into either category to appreciate the savings this mortgage provides home buyers. Check out the advantages below and what you need to know when considering your options.
This is by far the most popular loan option in the industry. It’s safe. Yet, there’s more time for interest to accrue. However, if you offer less than a 20% down payment, expect to pay private mortgage insurance (PMI) until you’ve reached 78% loan to value (LTV). Keep in mind that PMI is often less expensive than the monthly mortgage insurance that accompanies an FHA loan.
Understanding the way your mortgage amortizes is a great way to know which loan option is best for you. Get your questions answered and find a custom loan that makes sense for your financial goals. It just takes one call to American Financing.