Currently there are as many different types of Mortgages as there are classes of buyers. If you clearly explain your needs and objectives to one of our mortgage brokers, he will be able to advise you so that you can choose the best option.  

Fixed rate mortgage: The interest rate does not change during the life of the loan. It does not matter what interest rates the market goes up or down.

• Advantage:  Monthly mortgage payments will always remain constant, making the monthly liquidity flow more predictable.

• Disadvantage:  They have a higher interest because if interest rates go up, banks lose the opportunity to make more money with the funds they are lending to you.

Mortgages with variable rates (ARM's): In an ARM's (Adjustable Rate Mortgage) the interest rate is adjusted during the life of the loan according to a pre-established formula, which is related to the fluctuation of the interest rates in the financial market.

• Advantage:  Initially they have a lower interest rate because they share the risk with the bank of a possible increase in interest rates. Ideal if interest rates are down.

• Disadvantage:  They can be more expensive than a fixed rate loan if the interest rate rises in the long term.

FHA Loans: The Federal Housing Administration (FHA) is a federal agency whose primary objective is to provide housing opportunities for families who can verify their income but with not so good credit or with little money for the down payment. The agency does not provide the funds for the mortgages, but insures the loans made by the banks. FHA credits apply for homes of one or more families. The advantage for many buyers is that with the FHA loans a low-down payment of only 3.5% is required and they also enjoy a competitive interest rate. However, these loans require private mortgage insurance, or as it is called under these "PMI" loans, which is included in the monthly payment. 

Sub-prime loans: These are the loans for people with credit problems who are going to give 35% or more of the initial fee or who want to refinance and must 65% or less of what the house is worth. They have less strict qualification criteria than regular credits but charge much higher interest rates. They are temporary loans, generally less than three years, made for people with credit problems to draw up a financing plan so that as soon as their credit and financial circumstances improve can be refinanced at a lower interest rate. 

Check with one of our mortgage agents about the type of credit that best suits your present and future objectives and needs.