Home Loans

There are a variety of loans available for home buyers…and even those labeled as “bad loans” by the media may be a good option for some.  I speak from experience:

Our first mortgage was a subsidized Farmer’s Home Loan.  It was true negative amortization.  The house appreciated enough to pay back our subsidy and still break even when we sold.  We were thankful that the program gave us a start as young homeowners.

The next purchase was made with a traditional 30 year fixed mortgage.   We refinanced with another 30 year fixed loan to help with a small addition on the house. 

Then we bought a nearby vacant lot- the seller held the financing for a year until we sold our other home.  We applied for a construction loan…and eventually converted to 30 year fixed once the new house was complete.

More creative borrowing options existed when we wanted to buy rental property (and eventually our current primary home).  Adjustable rate mortgages, option ARM,  80/10 loan (to avoid PMI), interest only loans, and owner financing enabled those purchases to work.  

We have never held a property longer than 9 years (an important factor when considering loans).   The 30 year loan provides a sense of security, but it’s not always the most logical choice. 

Discuss your plans and comfort level with a lender- it may save you thousands of dollars.  If you need a recommendation for a local mortgage representative, let me know.   ann@anndelaney.com

P.S.  The clock is ticking…  We have owned our present location for 7 years, but maybe we should only count after we moved in to the new house built 5 years ago  ;)  less pressure that way!