The purchase of a new home can be an exciting time in your life. However, it can also be a very frustrating and confusing time as well with all the different financial terms and products. We understand that there are many factors to consider when choosing a mortgage, which is why Forcht Bank Mortgage Officers are available to assist you throughout the entire process - from start to finish. The path to homeownership can be easier than you imagine. Use the resources below to help you determine what type of mortgage may best fit your needs.
What's the Best Mortgage Product for Me?
For more information regarding our wide variety of mortgage products, please contact your local Forcht Banking Center Representative
Fixed Rate Mortgages
As the name implies, the interest rate is set and will not change over the life of the mortgage. The monthly payment remains constant throughout the life of the loan enabling the borrower to be confident in the future payments required. Each monthly payment is comprised of interest and principal in which earlier payments go primarily towards interest and payments at the end of the life of the mortgage go toward the principal. Typical fixed rate mortgages range anywhere between 15 years and 30 years. The length of the term of the loan can have an effect on the monthly payment. The link below illustrates the difference in payments between a 15 and 30-year mortgage.
*Chart shown above is for illustrative purposes only. Your rate and loan agreement may vary. Other fees and charges may apply, and affect rate and payment plan.
Adjustable Rate Mortgages (ARMs)
With an adjustable rate mortgage, the interest rate and monthly payments can change with the market index. Typically the rate is initially fixed for an agreed amount of time, and then can be re-adjusted each year thereafter. The benefit to the borrower is that usually ARMs have interest rates that are typically lower than the rates on fixed rate mortgages. ARMs are traditionally suited for homeowners that are looking at short-term ownership, or moving into another home within the next 5 to 7 years.
A jumbo mortgage is for a loan that exceeds $417,000. Jumbo mortgages terms at Forcht Bank can be customized to fit your needs.
VA mortgages are available to qualifying veterans of the armed services, those currently in active duty or in Reserves, and widows and widowers of veterans. These mortgages are specifically for veterans and current members of the military and offer certain features because they are government-insured.
These are short term mortgages that are typically written as a fixed rate mortgage. Most balloon mortgages have a low initial interest rate, and a shorter term of 5 to 7 years. Balloon mortgages are typically ideal for those who will be living in the home for a short period of time or for people who expect an increase in income in the near future.
A Federal Housing Administration (FHA) mortgage is a loan that is government-insured and backed by the FHA. This type of mortgage is ideal for some first-time homebuyers because it typically requires a smaller down payment than traditional mortgages.
USDA / Rural Housing Mortgage
USDA/Rural Housing Mortgages are geared toward homebuyers who live in rural areas and who have low-to-moderate income with zero money to put down. This allows borrowers to finance 100% of the purchase price.
A Construction Loan is used to finance the building or construction of a new home or building. These loans can be tailored to meet your lending needs.