THEWAVE F L O R I D A C R E D I T U N I O N We’re here for your mortgage needs! Whether you’re a first-time or a seasoned homebuyer, looking for refinancing or a home equity loan, call 352-264-2649 or visit flcu.org/mortgage to get started. We also have tools designed to help you! At flcu.org , you can access our Road to Home Ownership Guide, easy-to-use mortgage calculators and educational videos among other resources. June is National Homeownership Month, so let’s review mortgage options available to you and their benefits. A fixed-rate mortgage is a loan that has the same interest rate throughout the mortgage term, and it’s a great option for those who plan to stay in a home long-term. It’s also great for those who love to budget because your payment never changes month-to-month! Adjustable-rate mortgages, or ARMs, have variable rates that are typically lower than fixed-rate mortgages, making homes more affordable when the fixed rates are high. The difference between an ARM and a fixed-rate mortgage is that the ARM’s interest rate adjusts annually depending on market conditions. These rate adjustments don’t happen right away, as ARMs typically have fixed loan terms, also. For example, a 5/1 ARM has a fixed term for the first 5 years before adjusting yearly. ARMs are great for buyers with short- term home plans or with plans to refinance at the end of the fixed term. FHA, VA and USDA mortgages are all fixed-rate mortgages, and because they’re government-backed, lenders assume less risk, and borrowers benefit from lower interest rates. FHA mortgages are insured through the Federal Housing Administration and are a good choice for first- Mortgage Options and Their Advantages J U N E 2 0 2 2 time homebuyers due to their low down payment option (as little as 3.5% of the home’s value). VA mortgages are insured through the Department of Veteran Affairs and offer 100% financing for qualifying veterans. Lastly, USDA mortgages are insured by the U.S. Department of Agriculture. They have geographical restrictions (suburban or rural areas) and also offer 100% financing. Before you start house-shopping, get pre-approved! Know your budget and which loans you qualify for. Your pre-approval letter gives you an edge over potential buyers who are less qualified and less prepared, becoming a wonderful asset in the current competitive home environment.