A Variety of Financing Options


A Variety of Financing Options

Purchasing a home is a big deal -- and often one of the most exciting and stressful moments in a person's life. Many of your buyers have worked and saved to make this dream a reality so you want to be sure they're making all the right decisions and spending every penny efficiently. The home-buying process can be made more complex with new vocabulary and all those finance options. What to choose? After all, you're building a long term relationship with your clients, one sale at a time, and you want to provide great customer service.

Provident Credit Union can help you and your buyer make all these decisions clearer, faster and easier, starting with a look at the core topic of importance -- the interest rate. Buyers need to know that mortgages basically come in two forms: fixed and adjustable.

Fixed Rate

Fixed rate mortgages are "locked in" at a certain interest rate and payments will be made at that interest rate for the duration of the loan. The homeowner gets a stable, predictable amount for every pay period, period. However, if interest rates go down and a homeowner wants to take advantage of that, he must go through a process to re-finance his home, thereby beginning a new loan agreement.

Adjustable Rate Mortgage

Also referred to as an A.R.M. (spoken as the individual letters, not like the arm on your body), ARMs offer flexibility. The interest rate will change periodically over the life of the loan depending on the market. For select short term buyers this can be a very good thing, as taking advantage of lower interest rates can make homeownership more accessible -- and a sale for you. At the time of a homeowner's initial payment, the rate may be quite low yet, over time, the market may change and the payment might increase. Because of this, ARMs usually come with a maximum amount they are allowed to fluctuate either way -- both high and low -- protecting the borrower.

Whichever option you might recommend to your clients, you're one step closer to realizing that home they've been working so hard for. Provident Credit Union can provide you and all your buyers with a variety of financing options at competitive rates, helping make this important time of life decision as simple and hassle-free as possible for everyone in the process.