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Your Lifestyle, Your Mortgage: Choosing the Right Home Loan

As we swing into the fourth quarter of 2016, it continues to be a strong year for real estate. With historically low interest rates for primary and secondary residence loans, now is a great time to refinance your current home loan, buy a new home, or invest in a vacation home with a mortgage that fits your lifestyle. We asked Matt Helling, Vice President of Sales and Operations at Cambria® Mortgage™, to explain the various loan programs. 

Conventional Mortgages

“For first-time homeowners and young families who plan to be in their homes for many years, a conventional 30-year mortgage is a great way to lock in a low interest rate for the long term,” says Helling. “But, if you’re looking ahead to an empty nest and want to create more flexibility in your life, you may prefer a 15- or 20-year mortgage which can save you hundreds of thousands of dollars over the life of your loan.” The experts at Cambria Mortgage can help you assess your needs and goals and select the right loan term and interest rate. They’ll also help you evaluate your closing cost options, including a no cost option, to select the right choice for you.

VA Home Loans

If you’ve served your country, let Cambria Mortgage serve you. “At Cambria Mortgage, we consider it an honor to help you get the benefits you’re entitled to for your service to our country,” says Helling. “Our VA loan experts can discuss more about the benefits available to you, including no down payments, no private mortgage insurance, low closing costs, competitive interest rates, and more.” Let Cambria Mortgage help you determine whether a VA home loan is right for you and obtain a certificate of eligibility from the U.S. Department of Veterans Affairs.

Adjustable Rate Mortgages

If you’re only planning to be in your home for five years or less, either because of your career or other reasons, an adjustable rate mortgage, known as an ARM loan, may be the right choice. “Currently, mortgage interest rates for ARM loans are significantly lower than conventional loans,” says Helling. “But, there’s always a risk that mortgage rates will go up, thereby increasing your payment, so ARM loans typically make sense as a short-term strategy.”

Second Home Loans

If you’ve been thinking of investing in a vacation condo or other property, the experts at Cambria Mortgage can help you secure a second home mortgage loan. “Unlike small banks in resort communities, which typically only offer ARM loans, Cambria Mortgage is a full-service mortgage lender, so we can offer a 30-year fixed rate mortgage loan with attractive monthly payments,” says Helling. As an added bonus, the interest on a secondary home mortgage is usually tax-deductible. You may also be able to rent your house or condo during peak times to reduce your cost of ownership and create cash flow.

Reverse Mortgages

If you or a family member is approaching retirement, a reverse mortgage is a great way to tap your home equity, increase your nest egg, and create peace of mind. Designed for homeowners aged 62 and older, reverse mortgages are FHA-insured loans that allow homeowners to convert part of the equity in their homes to cash. “As the name suggests, reverse mortgages are the opposite of regular mortgages where the homeowner makes monthly payments to a lender,” says Helling. “Instead, the homeowner receives payments from the lender either as a lump sum, fixed monthly payments, a line of credit, or a combination.” Reverse mortgages offer many benefits for a homeowner, including the ability to retain ownership or title to the home. The income has no effect on regular

Social Security or Medicare benefits and no restrictions on how it can be used.

Let Cambria Mortgage Help

If you’re thinking of refinancing or buying a new home or vacation property, your Cambria Mortgage loan expert can explain the various mortgage programs and help you decide which one best fits your needs. “With any home loan, it’s important to consult your accountant or financial advisor to determine how much you should spend on a down payment and your monthly loan payments,” says Helling. “Even if you can afford a large down payment, it may be worthwhile to make a smaller down payment and keep the cash on hand to invest or start an emergency fund.”

Call Cambria Mortgage

To get started, call Cambria Mortgage at 952-942-0110 or visit CambriaMortgage.com. Our team of experts will provide personal, hometown service with sound advice and impeccable attention to detail at every step of the process.