If you’re just starting the home buying process, or it’s been a while since you purchased a house, mortgages can seem pretty scary.  What kinds of home loans are available?  What is an ARM, and why does it matter?  What is the difference between an FHA, VA, and USDA/RD loan?

(Also, what’s with all of these letters? Did someone knock over a scrabble board?)  

Fortunately, Grand Rapids mortgages aren’t rocket science.  So what do you need to know, and what should you look out for?

1.  Fixed Rate vs. Adjustable Rate Mortgages

Let’s start with the difference between a fixed-rate home loan and an adjustable rate mortgage (ARM).

First, understand that mortgage terms are long.  They are usually 10, 15, or 30 year agreements to pay back the loan, and you are charged interest until the mortgage is paid off. Continue reading “What to Look For in a Grand Rapids Mortgage” →