Understanding your Mortgage Options with Addition Financial

Table of Contents

1. Fixed-Rate Mortgage
2. 5/6 Adjustable-Rate Mortgage
3. Mortgages for First-Time Homebuyers
4. Refinancing Options to Maximize Your Investment
5. Unlock Home Equity with Addition Financial
6. Begin Building Your New Home

During your homeownership journey, choosing the right mortgage is essential. To be sure you're making the best decision for your individual needs, you should start by familiarizing yourself with mortgage basics and each loan type available to you.

Here at Addition Financial, we offer a wide range of home loans that can help you reach your goals. To better understand each type of loan, we encourage you to read through the following breakdown and assess which mortgage option best aligns with your aspirations. Then, you'll be ready to take the next steps in the mortgage process and toward your perfect home.

Fixed-Rate Mortgage

With our Fixed-Rate Mortgage, you can enjoy the same interest rate for the entire loan term. This conventional loan makes it easier to plan your budget since your monthly payment and mortgage rate won't change at all.

This home loan is perfect if you're planning on living in your home for many years and prefer knowing exactly what your payments will be every month, in addition to the total amount of interest you'll pay over the life of the loan. For those who qualify, it offers protection from any ups and downs in the mortgage market and flexible repayment terms.

5/6 Adjustable-Rate Mortgage

Our Adjustable-Rate Mortgage, or ARM, is set up as a 5/6. That means your mortgage interest rate won't change for the first five years. After that, it'll adjust every six months for the rest of the loan's life. This setup can give you lower starting rates compared to loans where the rate never changes, making it a more affordable option in the short term.

Remember, once those five years are up, how much you pay each month could go up or down depending on the market. For a borrower who thinks they'll move or sell their house in a few short years, these mortgage loans might be just right.

Mortgages for First-Time Homebuyers

For a first-time homebuyer, figuring out mortgages can seem pretty overwhelming. Addition Financial has your back with tailored First-Time Homebuyer mortgages that can help you get started. Our local experts are here to guide those who are new to homeownership, and you can put as little as 3% down. Our team of loan officers will walk you through everything – from how much money you can borrow toward the home price to what mortgage insurance is all about.

Jumbo Loans

For those eyeing a high-value home with a large purchase price, a Jumbo Mortgage could be your best bet. These loans go beyond the usual limits of Freddie Mac and Fannie Mae. With this option from Addition Financial, eligible borrowers have the option to borrow more than conforming loans, with only 20% down. That means we're making your dream home that much more accessible.

Low Closing Cost Option

When you buy a house, besides the loan, there are extra costs known as closing costs. They cover checking the home’s value, property verification, and loan setup. These fees can significantly increase the total home purchase expenses. Addition Financial offers a Low Closing Cost Option, so homebuyers don’t have to pay as much initially. With this loan program, we cover 1.5% of your loan amount in closing costs up to $5,000.

A+ Heroes Mortgage

Addition Financial proudly offers an A+ Heroes Mortgage tailored for community heroes like teachers, healthcare professionals, firefighters, and law enforcement personnel. These exclusive programs provide reduced fees and a closing cost credit to support those who serve our communities selflessly. Whether you are a first responder or an educator, our mortgage options cater to your specific needs, making your dream of owning a home a reality.

Refinancing Options to Maximize Your Investment

Refinancing your mortgage can be a smart way to make the most of your real estate investment. With these loan options, you might be able to get lower interest mortgage rates, cut down your monthly mortgage payment amount, or change the length of your loan so it fits better with what you're aiming for financially.

We offer some useful tools, like a mortgage calculator, to help you compare and analyze different refinancing options, allowing you to make the best decision for your financial goals.

Mortgage Refinance

With our Mortgage Refinance, you can change what your monthly mortgage payment looks like. With a balance-only refinance, you can lower your monthly payment or shorten the length of the term on your current loan. A cash-out refinance is a great option if you're looking for a lower interest rate and want to tap into home equity for borrowing. By refinancing, you have the freedom to adjust your loan to better fit your financial goals and needs.

Fast-Track Refinance Mortgage

Are you looking to own your home once and for all in the next 5 to 10 years? For those wanting to make their refinancing journey smoother, going for a Fast Track Refinance Mortgage might be right. This option allows you to enjoy a low fixed rate, low closing costs, and quick closing. That way, you'll be on your way to paying off your mortgage before you know it.

Unlock Home Equity with Addition Financial

With Addition Financial, you can make the most of your home equity. These financing options allow you to keep your house while using its value for more funds. Borrowing against the value of your house can be great for fixing it up, paying off debts, or covering other money needs.

Second Mortgages

With a Second Mortgage, your home's equity can fund major renovations. This kind of loan uses your home as collateral and provides you with a lump sum payout. With a fixed rate and predictable payments, you can more easily plan your budget. Whether you're ready to begin working on upgrades to your current home or begin paying off debt, this loan could be a great choice for you.

Home Equity Lines of Credit

A Home Equity Line of Credit from Addition Financial gives you the chance to use your home's value for different money needs. This borrowing option works a bit like a credit card because it lets you borrow money when you need it and only charges interest on what you spend. This gives you a considerable amount of control over your budget while paying for larger expenses.

Begin Building Your New Home

If you're ready to start building a new home, Addition Financial offers various mortgage options to help. Our team is ready to support and assist you in every step of the process as you bring your new house to life.

Lot Loans

Build the home you want, where you want. Addition Financial offers Lot Loans to help you secure the perfect spot when you're ready. Our loan officers can help you explore lot loans as an option for your dream home location.

Construction to Permanent Loans

A Construction to Permanent Loan combines building funds with a mortgage loan, reducing your costs and cutting the need for more than one loan. Borrowers only need one application and approval to transition from construction to long-term financing, allowing you to move into your primary residence with ease. This option from Addition Financial streamlines the process of creating and moving into your perfect home.

Investment Property Financing

Investing in real estate can be profitable, and Addition Financial offers an Investment Property Loan option to help you reach your goals. Whether you're a beginner investor or experienced, we can help you purchase or refinance an investment property, then helping you boost your income on that property.

Choose a Mortgage with Addition Financial

Choosing Addition Financial as your mortgage lender means personalized guidance and a range of loan options for your situation. Our experts will guide you along the way, making understanding your mortgage options much simpler. Ready to get one step closer to making your home dreams a reality? Get started now by diving deeper into our mortgages.