When you are looking for a new home in Atlanta, it helps to know the financing options that are available to you. The more information you have, the more confident you will be that you’re choosing the mortgage loan that’s right for you. Here are some different types of mortgage loans to consider:
If you’ve found a home you plan to live in for ten years or more, consider a fixed-rate loan. It’s predictable and stable since the interest rate is set for the full length of the loan term, making it easier to plan a budget. Bank of America offers many fixed-rate loans with terms to fit a variety of budgets, including FHA loans with as little as 3.5% down.
If you plan on being in your home for a shorter period of time, or expect your income to increase over the years, an adjustable-rate mortgage (ARM) may be the right fit for you. An ARM usually starts with a lower rate during the initial payment period (usually one, three, five, seven, or ten years). After that, the interest rate may change periodically (usually annually or semiannually) based on market conditions. As the rate changes, your monthly payment changes. ARMs feature an adjustment cap, which limits how much the interest rate can go up at each adjustment period.
For homebuyers who require larger loan amounts, Bank of America offers jumbo fixed- and adjustable-rate loan programs that are available in amounts up to $5 million.
Loans for first-time homebuyers
Bank of America offers affordable loans to make it easier for first-time homebuyers to qualify for a home loan. Specifically, FHA and VA government loans and our low-to-moderate income programs are available to qualified buyers based on income or property location.
Don’t forget to consider the repayment schedule. Typically, the sooner you repay the loan, the less you’ll pay in interest. However, the longer you extend the term of your financing, the lower your monthly payments may be. So when choosing a loan term, consider your budget, your long-term spending patterns, your income and how long you plan to stay in your home.