The Lindley Team  |  503.517.8641 (click to call)

Buying a house means you most likely need to get a mortgage. With the variety of home loans on the market, it can be confusing trying to figure out which option is best for you. As your local Portland mortgage lenders, we have compiled a list of the most common loan options and have briefly explained what the benefits to each loan are.

  • Fixed Rate Mortgages: This mortgage has a single, fixed rate for your monthly payments, and are typically 15 or 30-year loans. The benefit of a fixed rate mortgage is that it allows you to accurately budget. The rate will never change so you will know exactly how much you owe and how long it will take you to pay it off. This is a good option for you if you are planning on staying in your home for a long period of time.
  • Adjustable Rate Mortgages: This loan generally has lower interest rates than a fixed rate mortgage, however, the rate can change. This is more of a risky option because it is difficult to accurately budget, and the rate can adjust according to the underlying index the loan is linked to. The benefit of this loan is that it usually offers lower interest rates, which may be a good option for you if you have a lower credit score or would like a lower monthly payment.
  • FHA Loan: This loan is administered by the Federal Housing Administration (FHA) and as whole, the program is more forgiving of borrowers with less than perfect credit and/or those with little cash on hand, as it only requires a 3.5% down payment. This benefits those who do not have a lot of money saved, but a low down payment also means you will have to pay mortgage insurance for the life of the loan, and will pay un upfront funding fee. Contact your mortgage broker in Portland for more information.
  • VA Loan: If you actively serve or are a veteran in the United States military, then you could qualify for a VA loan. Requirements to qualify for a VA loan include serving during wartime for at least 90 days or serving 180 days during peacetime. If you are enlisted in the reserves you can still qualify for a VA loan if you have served at least 6 years. Benefits of this loan are that no down payment is required, the VA loan doesn’t require mortgage insurance, and they typically offer lower interest rates. Additional benefits are available to veterans with a  VA established service connected disability rating of at least 10%.
  • USDA Loan: This loan is provided by the United States Department of Agriculture and is for those living in or looking to move to a rural area. Just like VA loans, zero down payment is required and lower interest rates are available.

With multiple different home loan options on the market today, it is important you talk to your mortgage broker in Portland so you know exactly which option is ideal for you and your unique financial story. The Lindley Team at Mortgage Express can answer all your questions and help you achieve your dream of homeownership.

So don’t wait, call our office today at 503-517-8641 to get started!