Minnesota Loan Types | MN Mortgage Information

Whether you’re looking for a townhouse in St. Paul, a renovated condo in Minneapolis, or a home right on Mille Lacs Lake, you deserve to find an affordable mortgage that won’t break the bank. To do this, you’ll need to learn as much as you can about the mortgage process and available Minnesota mortgage types. You’ll also need to surround yourself with knowledgeable, experienced sources of mortgage information. That’s where we come in!

Helpful Mortgage Information at Your Fingertips
Our company helps hundreds of MN homebuyers reach their home-owning goals each year. We not only give helpful tips and priceless information about the MN mortgage process, we also go one step further and match potential homebuyers with a qualified, reputable Minnesota mortgage lender. So why wait? Get started today, and take one step closer to owning your MN dream home.

Assess the Pros and Cons of Various MN Loan Types
Before researching MN mortgage types, be sure to consider your budget and financial status. By determining how much you can afford to spend on your mortgage each month, as well as the security of your job and income, you’ll have a better idea of which MN mortgage type best suits you. Let’s take a look at three popular mortgages available to Minnesota homebuyers.

• FRM: A Fixed Rate Mortgage (FRM) offers stability and security for the homeowner, in that the interest rate and monthly mortgage payment remains the same for the entire loan term. This is great for MN homebuyers who can lock in a low rate at the time of closing, because their loan is protected against inflation. The downside of a FRM is that it usually has a higher interest rate than other loan types, meaning that you’ll have limited buying power.
• ARM: An Adjustable Rate Mortgage (ARM) offers a lower initial interest rate, but more risk, than a FRM. After a set time period (e.g. five years), the low initial rate becomes adjustable and fluctuates with current market rates. This means that your mortgage payment could increase or decrease. ARMs are a great option for homeowners who only plan to live in their home for a short period of time, because they can take advantage of the low initial interest rate. ARMs, however, are not a good option for those on a fixed income, because the monthly payment could increase after a few years.
• IO: An Interest Only Mortgage is one that’s split into two payment periods. During the first time period, you’re only responsible for your mortgage’s interest payments. This means that you’ll have a low monthly payment, which is great for borrowers who are currently strapped for cash but expect more income in the future. After the interest-only payment period, borrowers see a significant monthly payment increase, as they’re responsible for both interest and principal payments.

Determine the MN Mortgage that’s Right for You
Now that you’ve determined your budget and researched available mortgage types, it’s time to decide which Minnesota mortgage is best for your lifestyle and budget. Remember that this is a big decision that will most likely be with you for years. Don’t go at it alone: you can depend on us to help with each step of the way, whether you’d like to purchase a Duluth home on Lake Superior, a two-story in St. Cloud off of I-94, a fixer-upper in Rochester, or a brand new home in Bemidji.

Contact us today to get the process started with a free mortgage rate quote and take advantage of the low interest rates in Minnesota. Let us pair you with a highly-rated MN mortgage lender offering bargain-basement rates and superior customer service!