American Mortgage Resource, Inc.

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Tag: Mortgage (page 3 of 3)

The Most Popular Mortgages and Their Benefits

Buying a home is both one of the most exciting events in a person’s life and one of the most stressful. Ensuring you find the right house while also deciding on the proper mortgage that will set you up for a successful future can be an extremely difficult task, but with the right help it is more than possible. Below we have listed the four most popular mortgages when it comes to real estate, so read on if you’d like to find out which of them is best for you!

Fixed Rate Mortgages:

Easily the most popular of any home mortgage, a fixed rate mortgage basically means that a set interest rate is applied to your loan, which provides a very stable and consistent monthly payment. The length of these fixed mortgages can range from anything as long as 30 years to a much shorter 15 years, which obviously just means you will be paying it off in smaller increments over a longer period of time or vice versa. While close to 90 percent of home owners opt to go with the 30 year mortgage to start, due to the lower monthly payments, the interest you pay on a short 15 or 20 year mortgage can make for a much more reasonable loan, because it is much lower considering how low the liability is for the bank.

Adjustable Rate Mortgages:

While this is a less popular option than a fixed rate mortgage in the United States, many different parts of the world like Britain and Australia frequently take advantage of an adjustable rate mortgage (ARM). The reason it would be wise to consider an ARM is because you are able to take advantage of lower interest rates in a given year without refinancing your home. On the flipside, there is always the chance that the rates will go up, causing your payments to increase with it, but there are many benefits to keeping your mortgage open to a yearly reassessment of its interest.

Balloon Mortgages:

This is a much different and specific type of mortgage, which is best used only if you have a strong guarantee that you will have the money necessary for the loan in the foreseeable future. Balloon mortgages are often shorter in length, around 10 years and have much lower payments throughout a majority of the mortgage term. Your payments are often just the interest for a large portion of the term, however, the catch is the fact that you are required to pay a majority of the entire mortgage sum at the end of the term. There are a lot of upsides to a balloon mortgage, but the circumstances have to match up very specifically to make it a good fit.

FHA Loans:

An FHA loan is for a very specific group of borrowers, but can nonetheless be extremely beneficial if you qualify. Designed to be for lower income individuals that are looking to secure a home, Federal Housing Administration loans are approved in order to offer lower minimum down payments for those that can’t afford a large lump sum at signing. They also have a lower threshold for the necessary credit score in order to allow families that have less immediate income to purchase. Oftentimes this type of loan is used by first time buyers and eventually refinanced over time if their financial circumstances improve, but it is important to understand that the smaller the down payment you make, the more you will owe over the course of the mortgage.


As is evident in our article, there are many different types of loans that serve a large number of purposes for those that use them. Regardless of what you may be looking for when it comes to your mortgage, there is an option out there for everybody. At American Mortgage Resource, we want nothing more than to walk you through the home-buying process and determine what type of loan works best for you. Come in today and start the next great chapter of your life!

How Jumbo Loans Can Benefit You

When it comes to Jumbo Loans, these are loans that are over $400,000. These type of loans are similar to traditional mortgages but jumbo loans are quite a bit more difficult to get approved for. It is for that reason that they are for individuals with a higher income range. If this individual or individuals want to look into buying a nicer home, they will naturally need a bit larger of a mortgage loan.

As the name suggests, a jumbo loan will offer the ability, to a qualified borrower, for a sum that is quite a larger sum than is typically allowed. There are many ways that Jumbo Loans can benefit you. Read on and find out a few.

The Basics of Jumbo Loans

Dependent on where you live in the United States, you will fall custom to various different loan restrictions. This is referred to as “conforming loan limit.” What this means is generally the highest amount a borrower can receive on a single mortgage. This amount is usually between $400,000 and $600,000 in most states.

Though this loan may be larger, as you were looking for, it does come with a few tradeoffs. This includes higher mortgage rates due to the higher risk assumed by the lender of your choosing. Not only that, but Jumbo Loans typically require a credit score of 720 or higher.

Jumbo Loans are Versatile

There are many more benefits that come along with Jumbo Loans. There is a lot more flexibility in income qualifications. What we mean by this is that our Jumbo Loans come with no private mortgage insurance attached. The fixed rates offered will often be as low as 4%. While many lenders will offer both 15- and 30-year loans, they will also offer both fixed and adjusted rates. This provides the option down the line to refinance, if needed.

Not only that, but Jumbo Loan lenders are attaching attractive offers including private medical insurance, reduced lender fees, and quicker processing of the loan application.

Now that you have a better understanding of what jumbo Loans have to offer you, it is time for you to figure out if this type of loan is right for you. For all of you mortgage loan needs, you can count on our team at American Mortgage Resource, Inc. to provide you with the exceptional service that you deserve.

The Benefits of Refinancing your Current Mortgage

You absolutely love your home, but would be happy to see your mortgage rates drop. There are so many things that are on your list of things to pay for, including paying off expensive debts and saving for important events coming up in your life. If you are dissatisfied with your current mortgage terms and fees, it might be worth your while to consider refinancing your mortgage in favor of more desirable rates. In this blog post, we will further define refinancing and the ways it could help you save money on your home.

What is Refinancing?

Homeowners utilize this strategy to achieve their respective financial goals. Typically, people refinance their loans in order to acquire lower interest rates or to alter the terms of the mortgage itself. Refinancing your mortgage can also help you change your variable loan rate to a fixed one, which will provide you with more peace of mind. The initial loan gets paid off by the bank, then another loan can be created with new guidelines. It is recommended that you have a great credit score when attempting to refinance your home because this will ensure you get reduced interest rates. Those with a low credit score might end up with higher rates if they attempt to refinance, so it is important that you are aware of your own score. With time, people’s earnings tend to increase, which allows them to pay their bills more quickly and expand their credit score; this is the time to consider refinancing.

Advantages to Refinancing

The biggest benefit of refinancing your mortgage is achieving lower interest rates on your monthly mortgage payments, which will allow you to put your money toward your other priorities. You will be astounded by the hundreds of dollars you save annually with a refinance. Another reason people decide to use this strategy is because they are looking to secure enough money for a substantial purchase in their life, be it a car or paying off credit card debt. To do this, they refinance with the aim to get equity out of their home. First, an accurate appraisal is required, then the lender determines the percentage of the appraisal that they will loan out. Finally, the amount that was owed on the original mortgage is subtracted so it can be paid off. The homeowner is then left with the remaining balance to pay off their newly refinanced loans.

Are There Risks to Refinancing?

It is important to do thorough research to determine your potential savings prior to making this big decision. If you do choose to refinance your mortgage, there is the possibility that you will need to pay new closing costs. In addition, it is recommended that you hire a lawyer to help make sure you get the best deal possible. Along with inspection fees and application fees, refinancing your home might end up costing more than staying with your current mortgage costs.


Finding a way to lower the interest rates on your mortgage can seem overwhelming, but it can save you a significant amount of money in the long run. A qualified mortgage broker will make the entire process much simpler for you, so you can focus on more pressing things in your life. If you are looking for a home mortgage broker to help you make the best financial decisions for you and your family, you can count on us at American Mortgage Resource. We look forward to serving your financial service needs.

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