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Financing Options

At Great Western Mortgage, we'll work with you to determine which type of mortgage is right for you based on your plans and your budget.

30-Year Fixed Rate Mortgage

The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.

15-Year Fixed Rate Mortgage

This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate - and you'll own your home twice as fast. The disadvantage with a 15-year loan is you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments and pay off the loan in 15 years. This approach is often preferred to avoid potential cost with refinancing the loan from 15 years back to a 30 year mortgage term.

Adjustable Rate Mortgages (ARMs) (3/1, 5/1 Loans)

Adjustable Rate Mortgages (ARMs), also known as 3/1, 5/1, and 7/1 loans, can offer the best of both worlds: lower interest rates and a fixed payment for a certain period of time. For example, a "5/1 Loan" has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on current rates for the remaining 25 years. This may be a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs due to the overall cost savings. When it comes to ARMs, there's a basic rule to remember: the longer you ask the lender to charge you a specific rate, the more expensive the loan.

First Time Homebuyer Program

Great Western Mortgage is an approved lender of many states' first-time homebuyer programs, helping families finance down payments, closing costs and home repairs. Contact your mortgage loan specialist for more information.

FHA

This program helps people become homeowners by insuring mortgages. There are lots of reasons to ask your Great Western Mortgage loan specialist for an FHA loan:

  • Easier to Qualify - Because FHA insures your mortgage, lenders are more willing to give loans with lower qualifying requirements so it's easier for you to qualify.
  • Less than Perfect Credit - Even if you have had credit problems (such as bankruptcy), it's easier for you to qualify for an FHA loan than a conventional loan.
  • Low Down Payment - FHA loans require a low 3% down payment, and that money can come from a family member, employer, or charitable organization. No other loan allows this type of funding.

VA

The Department of Veterans Affairs insures mortgages for eligible veterans. It is possible for qualified veterans to obtain financing with no down payment or monthly mortgage insurance premiums. Benefits for this type of loan include:

  • No down payment (unless required by the lender or the purchase price is more than the reasonable value of the property)
  • Buyer informed of reasonable value
  • Negotiable interest rate
  • Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5% and exemption for veterans receiving VA compensation)
  • Closing costs are comparable with other financing types (and may even be lower)
  • No mortgage insurance premiums
  • An assumable mortgage
  • Right to prepay without penalty
  • For homes inspected by VA during construction, a warranty from builder and assistance from VA to obtain cooperation of builder
  • VA assistance to veteran borrowers in default due to temporary financial difficulty