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Financing a home

Choosing a type of mortgage

You can choose from various types of mortgage loans to finance your home purchase. These come with various benefits, and your Home Lending Advisor can help you understand the differences so you find one that best suits your financial situation.
 
Use our mortgage calculator to determine your payment based on the current interest rates in your area.

ARM loans

An adjustable-rate mortgage (ARM) can be a useful loan, offering buyers a lower fixed-rate for a limited amount of time.

FHA mortgages

Learn about FHA loans, a loan insured by the Federal Housing Administration, one of many loan options you can consider.

VA loans

Learn about VA Loans, a mortgage guaranteed by the U.S. Department of Veterans Affairs.

Jumbo loans

Learn about jumbo loans, a home loan that does not fit the standard terms of a conventional mortgage.

15 vs. 30-year

Consider these factors when choosing between a 15 vs. 30-year mortgage.

 

How much home can you afford?

Take the first step and get prequalified.

You can save thousands in interest over the life of your loan by choosing a 15-year term over a 30-year term. Your monthly payment, though, will be higher. Use our 30-year versus 15-year mortgage calculator to compare the two terms and see which makes the most sense for you.

Real-Life Examples

Choosing a fixed-rate mortgage:

Jack and Mercedes want to buy a house. While they don't have children, they plan to in the future. They both have stable jobs, but they don't expect to make a lot more money in the future.

They find a nice home in a safe neighborhood where the schools are good. They choose a 30-year fixed-rate mortgage because they know exactly how much they'll pay every month. Two years later, they have their first child. Three years later, they have another. Mercedes stops working for a while, and they reduce their budget but have the security of knowing how much their mortgage payment will be each month. When the kids get to be school age, Mercedes goes back to work.

At first, their house loses some value, but they're not planning to move soon. After 10 years, it's actually worth more than they bought it for. After 30 years, with their kids out of the house, they've made their last payment. Now, as they think about retirement, their monthly housing costs are only taxes and insurance, plus upkeep, so they can get by on less. They can sell the house if they want or leave it to their kids.

Choosing an adjustable-rate mortgage:

Kathy is a physician in the market for a house. She wants to buy a house because it can be a smart investment, and she enjoys redecorating. She'll likely have to move, possibly more than once, as her career advances and she'll make significantly more money in 10 years than she does now. So, she chooses an adjustable-rate mortgage.

After three years, a promotion comes — if she'll move out of state to a new hospital. Kathy accepts the job and puts the house on the market. While the house lost a bit of value, the work she did on the kitchen balances that out, and she's able to get out without losing too much money. She moves and rents for a while, but eventually, she and her partner decide to settle down and buy a house together. And what kind of loan do they get? You guessed it: a 30-year fixed.

Additional considerations

We offer various options to help you finance your home. Your Home Lending Advisor can review each of the following with you to help determine which mortgage loan is right for you, including term length and fixed or adjustable rate.

Loan Type The Benefits The Details
Fixed–Rate Mortgage With a fixed–rate mortgage, you'll always know what your monthly principal and interest payments will be. You can also lower your monthly payments by spreading them out over a long period of time. Your interest rate is guaranteed to remain fixed for the length of the loan. You can choose a 10–, 15–, 20–, 25– or 30–year term. Low down payment options are available.
Adjustable–Rate Mortgage (ARM) ARMs offer lower early payments than a fixed–rate mortgage. If you're planning on owning your home for a short period of time, an ARM may be a good option. Your interest rate is fixed for 5, 7 or 10 years (based on the chosen product), and becomes variable for the remaining loan term, adjusting every year thereafter. For example, a 5/1 ARM would have a fixed interest rate for the first five years and then convert to an adjustable rate, with annual adjustments for the remaining term of the loan. You can choose a 5/1, 7/1 or 10/1 ARMs with a 30–year term.
Jumbo Mortgage Financing is available up to 85% of your home’s value with no mortgage insurance for a purchase or refinance with no cash back and up to 80% on a cash-out refinance. Jumbo mortgages are available when you need to finance amounts greater than conventional limits* up to $3 million on an eligible primary residence or second/vacation home. These loans are available up to 30-year terms. You can choose a jumbo fixed (15-, 20- or 30-year term) or a jumbo ARM (5/1, 7/1 or 10/1 with a 30-year term).

* Conventional limits can vary by area from $424,100 to $636,150 for a single-family home. A 20% down payment of $150,000 on a 30-year, fixed-rate mortgage with a loan amount of $600,000 and an interest rate of 4.375% (4.372% APR), would require 360 monthly payments of $2,995.71.

This example assumes a purchase transaction in Ohio, 60-day lock, 80 LTV, 700 FICO, single family, owner occupied, (.25) points, $30 hazard insurance, real estate taxes $94, and $0 homeowner’s dues. Rates can change daily.
DreaMaker® Mortgage DreaMaker offers down payment options as low as 3% (all of which can come from an eligible gift or grant) and reduced mortgage insurance requirements that result in lower monthly payments compared to other options. If you elect to take homebuyer education, you could receive up to $500 for completing the program. If you meet the low–to–moderate income requirements, you may be able to take advantage of Chase’s DreaMaker mortgage. These fixed–rate loans are available for a 30–year term and can be used to purchase or refinance an owner–occupied 1– to 4–unit up to $424,100 for a single unit, higher for 2– to 4–units.

A 3% down payment of $4500 on a 30-year, fixed-rate mortgage, with a loan amount of $145,500 and an interest rate of 4.5% (5.610% APR), would require 360 monthly payments of $1,076.73. This payment example excludes mortgage insurance.

This example assumes a purchase transaction in Ohio, 60-day lock, 97 LTV, 680 FICO, single family, owner-occupied, .375 points, $30 hazard insurance, real estate taxes $94, and $0 homeowner’s dues. Rates can change daily.
FHA Mortgage FHA mortgages offer down payments as low as 3.5%, which can include the use of gift funds. You do not need to meet low-to-moderate income requirements to qualify. An FHA Mortgage is a loan insured by the government. It can be used to purchase or refinance 1– to 4–unit properties up to $275,665 (higher amounts available in specific counties). You can choose a fixed 10–, 15–, 20–, 25– or 30–year term. Monthly mortgage insurance is required, as well as a mortgage insurance premium paid at closing.

A 3.5% down payment of $5,250 on a 30-year, fixed-rate mortgage with a loan amount of $144,750 and an interest rate of 4.5% (5.610% APR), would require 360 monthly payments of $1,076.73. You will be required to pay mortgage insurance, yet this example excludes mortgage insurance.

This example assumes a purchase transaction in Ohio, 60-day lock, 96.5 LTV, 680 FICO, single family, owner-occupied, .375 points, $30 hazard insurance, real estate taxes $94, and $0 homeowner’s dues. Rates can change daily.
Home Affordable Refinance Program (HARP) The HARP loan was created by the federal government and can be used to refinance either a fixed– or adjustable–rate mortgage. HARP loans require an acceptable payment history on your existing loan. Your current loan must have a note date on or before May 31, 2009 and must be owned by either Fannie Mae or Freddie Mac. You can qualify for a loan even if your home has declined in value and you can lower your monthly payment. If you currently have an adjustable–rate mortgage, you’ll be able to change to a more stable fixed–rate loan. You may not need to provide as much documentation and the approval time may be faster than a traditional refinance.
Veterans Affairs (VA) VA loans have low or no down payment options available and do not have a mortgage insurance requirement resulting in lower monthly payments compared to other options. If you are a veteran or active-duty servicemember, or a member of the Guard or Reserve, you may be eligible for a VA loan. These can be used to purchase or refinance 1- to 4-unit properties in 10-, 15-20-, 25- or 30- year terms. Learn more about VA benefits or call 1-800-827-1000.

Your Home Lending Advisor can review each type and help you determine which mortgage loan is right for you.