Virginia Mortgage Information | VA Mortgage Types

 As the #1 online source of Virginia mortgage information and lender recommendations, our goal is to inform potential VA homebuyers and help them to determine which mortgage type they’re best suited for. Whether you’re looking for a colonial-style home in Roanoke off of I-81, a cape cod at Virginia Beach, or a starter home in the state capital of Richmond, we can relieve mortgage-related anxiety and make the process simple and stress-free. Here’s how we do it.

 

#1: Understanding Virginia Mortgages

First, we’ll help you understand various types of mortgages offered in Virginia. Each has its pros and cons, so let’s take a closer look at some of the more popular Virginia mortgage types.

  • Fixed versus Adjustable Rate Mortgages: The difference between Fixed and Adjustable Rate Mortgages is really in the name: a Fixed Rate Mortgage (FRM) has a set interest rate for the life of the loan, while an Adjustable Rate Mortgage (ARM) has a variable rate that could go up or down depending on market conditions. A FRM is a popular mortgage type because it is stable and predictable; your monthly payments are always the same. An ARM is a good option for homeowners who plan to sell in a few years, because it has a low initial interest rate.
  • Interest Only Mortgage: An Interest Only mortgage is split into two payment periods. During the initial period, you’re only responsible for the mortgage’s interest payments. After the interest-only period, your monthly payments will significantly increase, as you’ll be responsible for both principal and interest. An Interest Only mortgage is great for homeowners who currently have a limited income, but expect to earn more money in 3 to 5 years.
  • Reverse Mortgage: A reverse mortgage is a great way for eligible homeowners 62-years-old or older to get extra cash by tapping into their home equity. It is called a reverse mortgage because, unlike traditional mortgages, the lender pays the homeowner until the home is no longer their primary residence. Reverse mortgages have higher interest rates and upfront costs than many traditional mortgages, but there are no income restrictions and they are not taxable. Homeowners can use the extra cash afforded by a reverse mortgage for daily living expenses, medical bills, repaying debt, home improvements, and much more.

 

#2 Understanding Your Budget

Now that you understand more about various types of Virginia mortgages, it’s time to examine your personal expenses. To do this, simply create a comprehensive monthly expense report detailing both large and small expenditures. This will give you an idea of how much you can afford to pay for a monthly mortgage, which in turn will help determine the type of home you can afford and the type of mortgage that’s best for you.

 

#3 Understanding the Importance of a Quality VA Lender

Your Virginia mortgage lender should help you select the type of mortgage that best fits your needs and budget. Once you’ve chosen the best mortgage for your situation, the loan originator should eliminate unnecessary fees in order to lower your bottom line. He or she should also offer low estimates on closing costs and interest rates, and then be able to lock them in.

 

While receiving a low mortgage rate is important, you’ll also need to find a mortgage lender with excellent customer service. This is where we can help. We’ve created a list of the best VA mortgage lenders in the state, and in minutes we can match you with one that perfectly fits your home-buying needs. From low rates, to eliminated fees, to excellent customer service, you’ll be satisfied with your Virginia mortgage lender. We guarantee it.

 

#4 Get Started Today!

Whether you’re a Hokie fan moving to Blacksburg, or a first-time homebuyer needing a small condo in Arlington near Washington D.C., we’re here to help make the Virginia home-buying experience simple and fun. Let’s get started - contact us today for your free interest rate quote!