30-Year Fixed Rate

Interest rate remains the same over the term of the loan. If all payments are paid on time and for exact amount owed it will take 30 years to pay off loan. This loan is stable and reliable, great for times of low interest and if you plan to stay in your house for a while.

15-Year Fixed Rate

The same as the 30-Year Fixed Rate, except the loan term is 15 years. Because the loan is paid off over 15 years and not 30 years your monthly payments will be higher but the amount you spend paying off your loan will be considerable less.

Adjustable Rate

Interest rate and monthly payments may rise and fall over the term of the loan depending on the annual rate adjustment which is determined by the changing economy.

Balloon Loan

Offers fixed payments over a period of time with one final balloon payment to pay off entire loan balance.

Renovation Loan

Finances the purchase of the home as well as the renovations to come after purchase. This loan is great for a "fizxer-upper" and the amount of money that can be borrowed is based on the expected future value of the home after the renovations are complete.

New Construction Loan

This type of loan is used for individuals purchasing a newly constructed home from a builder or building their own home.

Ways to Afford a Home

• Look into national, state and local programs that offer down payment assistance and grants. Go to www.getdownpayment.com or www.hud.gov for national programs. Check out www.omaha100.org for their program and a list of their partners in Omaha.
• Find a seller who may provide help with closing costs as well as a down payment through the Seller's Down Payment Assistance Program.
• Find a seller who is willing to either do a "rent to own" which will give you more time to improve your credit in order to obtain financing or a land contract in which the seller acts as your lender where all monthly payments go to the seller.
• Seek help from your family. Lender's are more willing to work with individuals with bad credit if there is a co-signer.
• Reduce your monthly payments through debt consolidation.
• "Buy down" your interest rate which allow you to obtain a larger loan as your monthly payments will go down with a lower interest rate.

Always seek the advice of your mortgage consultant. A knowledgeable mortgage consultant can always tell you what you need to do to improve your credit score to either obtain pre-approval or a better interest rate on your loan.

Make sure you give your mortgage consultant's contact information to your Realtor so they can work together when it comes time to search for a house and write an offer on a house.

MikeKnowsOmaha can help you with all of your Omaha Real Estate needs.

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