Which type of loan program is the best?

There isn't a single or simple answer to this question. The right type of mortgage for you depends on many different factors:  

• Your current financial picture.
• How you expect your finances to change.
• How long you intend to keep your house.
• How comfortable you are with your mortgage payment changing.

The best way to find the "right" answer is to discuss your finances, your plans and financial prospects, and your preferences frankly with a mortgage professional.

The following are some of loan programs that we have to offer to our clients:

Fixed Rate Mortgages
Adjustable Rate Mortgages (ARM)
Home Equity Loans
FHA/VA Loans
Construction Loans

The most common type of mortgage program are where your monthly payments for interest and principal never change. Property taxes and homeowners insurance may increase, but generally your monthly payments will be very stable.

These loans generally begin with an interest rate that is 2-3 percent below a comparable fixed rate mortgage, and could allow you to buy a more expensive home.

However, the interest rate changes at specified intervals (for example, every year) depending on changing market conditions; if interest rates go up, your monthly mortgage payment will go up, too. However, if rates go down, your mortgage payment will drop also.

There are also mortgages that combine aspects of fixed and adjustable rate mortgages - starting at a low fixed-rate for seven to ten years, for example, then adjusting to market conditions. Ask your mortgage professional about these and other special kinds of mortgages that fit your specific financial situation

FHA / VA Loans

If you need to borrow money, home equity loans may be one useful source of credit. The proceeds can be used at your discretion for example - home improvements, paying off debt, or college tuitions. In Texas, the maximum allowable of all loans on your homestead is 80% of the current market value.

If you want to build your home, a construction loan may be right for you. Weather you own the home and want to remodel or purchase a new home and remodel.