Types of Mortgages Video Transcript

Video Transcript: Different mortgage products

Onscreen: myNewHome(SM) logo
Different mortgage products

Description: Ja Yung is sitting in a chair, with a bright green wall behind her. There is shelving and various office-type items on the shelves as a backdrop.

Onscreen: Ja Yung, Mortgage Banker

Onscreen: Fixed Rate

Ja Yung: When you're dealing with trying to choose the mortgage that's right for you, there are many options out there. The most common products that you would probably come across would be a fixed interest rate where the interest rate never changes and it's a set number of years that you're going to pay on the loan and when you're done paying that period of time, that loan is paid off and you don't owe anything more.

Onscreen: Adjustable Rate

Ja Yung: Then you also have your adjustable rate mortgages where the interest rate may be fixed for a set period of time, let's say one, three, five, or seven years, and then every year after that, the interest rate changes, so therefore your payment would be changing as well.

Description: Buddie, a Mortgage Banker is sitting in an office-setting, in front of what looks like a concrete wall. There is an empty chair next to him, and books on a table behind that.

Onscreen: FHA Loan

Onscreen: Buddie, Mortgage Banker

Buddie: So an FHA loan is a government sponsored loan that you can get in with a little bit lower of a down payment, typically that's 3.5%.

Description: Ja Yung is in the bright green room, sitting in a cream-colored leather chair.

Onscreen: FHA Loan

Ja Yung: It's a nice product for a first-time home buyer, but it's really great for any home buyer who uh, may have a little bit higher debt-to-income ratio or they may not have as much cash in the bank to be able to utilize for reserves, or somebody, you know, who doesn't have, you know, the most perfect credit.

Onscreen: Curt, Mortgage Banker

Description: Curt is sitting in the same room as Buddie.

Curt: VA loans, uh, are for military folks, and so, either current military or retired military. The benefits to a VA loan primarily are, no down payment.

Description: Ja Yung is in the bright green room, sitting in a cream-colored leather chair.

Onscreen: VA Loan

Ja Yung: When you're dealing with a VA loan, uh, one of the most important things is that we do have to verify your participation in the military.

Onscreen: Jumbo Loan

Ja Yung: Jumbo loan is typically a loan that's larger than what we would consider to be a conforming loan size. These are loan sizes that are established by the government based on what the median income and median house prices are. So jumbos are typically your larger loan sizes. Uh, it typically means that they're higher interest rates and a little bit more strict credit guidelines.

Description: Tom is sitting in the same bright green room as Ja Yung.

Onscreen: Tom, Mortgage Banker

Tom: Depending on the county you live in, across the country each county has a different limit, but normally speaking, a jumbo loan is anything over $417,000. (music)

Onscreen: Mortgage products
There's a range of mortgage products
Research all your options
Your mortgage banker can help you decide
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