What Are My Loan Options?
Fixed-rate mortgages
With a fixed-rate mortgage, your interest rate – and your monthly payment of principal and interest – will stay the same for the entire term of the loan. This type of mortgage tends to be the most popular because it protects homeowners from the possibility of future monthly payment increases (a situation faced by borrowers who select an adjustable-rate mortgage) and is very straightforward.
Fixed-period Adjustable-Rate Mortgage (ARM) or hybrid ARM
Most lenders today offer a fixed-period or "hybrid” ARM, which is an adjustable-rate mortgage featuring an initial fixed interest rate period, typically of 3, 5, 7, or 10 years. After the fixed-rate period expires, the interest rate becomes adjustable for the remainder of the loan term. Fixed-period ARMs are often named by the length of time the interest rate remains fixed.
Example: In a 5/1 ARM, the “5” stands for the five-year introductory period during which the interest rate remains fixed. The “1” indicates that the interest rate is subject to adjustment once per year after the introductory period, and for the remainder of the loan term.
Government loans (FHA and VA)
If you're qualified, you may consider an FHA (Federal Housing Administration) or a VA (Department of Veterans Affairs) loan. These programs allow a lower down payment and credit score when compared to conventional loans.
FHA loans
FHA loans are helpful for applicants who don't have a 20% down payment saved or who need more flexible income or credit requirements.
There are some differences between FHA loans and conventional loans. For example, there's a maximum loan amount, which varies depending on where the home is located.
Also, FHA loan programs typically require you to pay mortgage insurance, similar to private mortgage insurance, or PMI. Under FHA, this is called a “mortgage insurance premium,” or MIP. Typically, you will pay an upfront mortgage insurance premium (UFMIP). Keep in mind that the UFMIP must be entirely financed into the mortgage or paid in cash; it cannot be partially financed. You will also pay an annual insurance premium, which you will pay monthly with your mortgage payment. You’ll need to factor that amount in when you set your budget.
VA loans
VA loans are offered by VA-approved lenders and are insured by the Department of Veterans Affairs. To qualify, you must be a current or former member of the U.S. armed forces or the current or surviving spouse of one. These loans can help reduce your down payment requirement, sometimes to zero. They may also help you get a lower interest rate on your loan. However, there are limits on the available loan amount. If you believe you may qualify for a VA loan, be sure to tell your lender, so you can explore your options together.
Jumbo loans
When you start to explore your mortgage options, you may hear the term "jumbo loan" come up. If you do, this may be because you live in a high-priced real estate market or are looking at properties that are more expensive than average. If you are considering homes requiring a mortgage that exceeds $417,000, it's a good idea to find out more about jumbo loans and discuss them with your lender.
Get In Touch
share
Local Expert Updates
Janie Eick
Cell: 712.339.0574
Greg Sheeler
Cell: 712.330.1573
Brooke Jones
Cell: 641.420.2172
Aaron Jones
Cell: 712.320.9442Community Updates
Silver Lake Country Club
Silver Lake Country Club is a great 9 hole golf course, situated just west of the town on Lake Park. I grew up playing this course, although it does not have any water or sand hazards, it has plenty of length at 3220 yards. A brutal stretch from hole 5 through 7. Hole 5 is a par 3 170yds, with a sloping green that makes it nearly impossible to stick the tee shot. Holes 6 and 7 par 4's boasting over 425+ yards each make for some tough pars. Overall this course is very fun to play, at some of the best prices around the Lakes Area. I encourage you to get out some day and check it out. They usually have specials if you tee off before noon on Fridays.
Bridges Bay Resort
Bridges Bay Resort is built on the land purchased a few years prior which used to be owned by the Nielsen family of Arnolds Park. This huge complex consists of a hotel, 3 condo buildings (a 4th is under construction), and over 100 vacation cabins. A popular part of the resort is the indoor waterpark that cabin and condo owners have access to, but also, so does the public for a fee. Braccos is a fantastic summertime restaurant and bar which is frequented by boat, by car, and by foot, especially from the owners of the condos and cabins. All of the units at Bridges Bay have an opportunity for a boat hoist, and it is an extremely popular destination for out of towners looking for a vacation spot in Okoboji. Because Bridges Bay is not within the city limits, many owners utilize property management companies to help them rent their units by the day, week, and month. I've personally sold and shown many condo and cabin units and would be delighted to help.
Ruthven Meat Locker
Ruthven Meat Locker is a local family owned business. Ruthven Locker at the Lakes is their 2nd retail store (with the original Meat Processing plant being a staple in the small town of Ruthven, Iowa). They are a full service meat shop providing their customers with excellent high quality cuts of beef & pork. Also provided are smoked meat snacks which they make right on site in Ruthven. Sure to please even the pickiest of palates! Ruthven Meat Locker prides themselves on promoting other local small businesses by selling them in our Spirit Lake store. You find everything from fine wood pieces to local honey, microgreens, baked goods, and delicious cheesecake. The Butcher’s Wife is always available to answer your questions and take special orders. Come on in and you’ll soon see that the rumors are true!