MANAGE YOUR REAL ESTATE WITH EASE.

Submitting Form...

The server encountered an error.

Form received.

 Variable interest loans such as the fluctuating ARM’s (Adjustable Rate Mortgages) should be loan products reserved for the more experienced and savvy real estate investor versus the traditional home buyer. A fixed rate loan is a mortgage product whose principal and interest payments do not change over the course of 15 or 30 years. Locking in your loan at a fixed interest rate based upon today's relatively low market rates is a great way to protect the loan from higher interest rate adjustments in the future.
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
FIXED RATE vs. VARIABLE INTEREST RATE
 Conventional loans are based upon the buyer's credit history, and if the buyer qualifies, then would be required to pay a down payment and interest rate based upon their respective creditworthiness. The amount of down payment can vary from 5-20% and PMI (Principal Mortgage Insurance) is required for any loan (except VA) when less than 20% of the principal loan is paid. VA (Department of Veterans Affairs) loans and USDA (US Department of Agriculture) loans allow for 100% financing, but closing costs of the loan may still have to be paid along with a possible funding fee. FHA (Federal Housing Authority) HUD loans are sponsored by Fannie Mae and Freddie Mac and allow first-time home buyers to obtain a loan with only 3.5% down payment and PMI would still apply.
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
CONVENTIONAL LOAN vs. GOVERNMENT SUBSIDIZED
 For the purposes of obtaining a mortgage, banks may classify a real estate investor as anyone buying a second home, even if you decide to use it solely for vacation purposes. A 20% down payment is typically required for a second mortgage. A first-time home buyer is classified as anyone buying a home for the first time within the last 5 YEARS. Therefore, if you have rented for at least 5 years after you sold your last home, then you are now considered a first-time home buyer eligible for the government subsidized programs listed above.
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
FIRST-TIME HOME BUYER vs. REAL ESTATE INVESTOR

1203 Florida Ave

St Cloud, FL 34769

(407) 729-1640 office

(407) 563-3925 fax

 

© 2016. Melentree Realty, LLC.

All Rights Reserved.

Julius Anthony Melendez

Licensed Real Estate Broker

 

Website Designed by