Buyer Resources
Mortgages At-A-Glance
Understanding your financing options
Types of Mortgages
Fixed-Rate Mortgage
The interest rate remains the same for the life of the loan, providing predictable monthly payments. Common terms are 15 or 30 years.
Adjustable-Rate Mortgage (ARM)
The interest rate changes periodically based on market conditions. Typically starts lower than fixed-rate loans but can increase over time.
FHA Loan
Insured by the Federal Housing Administration, these loans require a lower down payment (as low as 3.5%) and are popular with first-time buyers.
VA Loan
Available to eligible veterans and active-duty military, VA loans often require no down payment and offer competitive interest rates.
Jumbo Loan
For loan amounts that exceed conforming loan limits. Common in luxury markets like North Scottsdale where home prices are higher.
Conventional Loan
Not insured by the government, these loans typically require a higher credit score and down payment but offer flexible terms.
Key Terms to Know
- Down Payment:
- The upfront amount you pay toward the purchase price, typically 3–20% of the home's value.
- Principal:
- The original loan amount borrowed, not including interest.
- Interest Rate:
- The percentage charged by the lender for borrowing money.
- APR:
- Annual Percentage Rate — the total yearly cost of the loan including fees and interest.
- PMI:
- Private Mortgage Insurance — required when your down payment is less than 20%.
- Escrow:
- An account held by a third party to manage property taxes and insurance payments.
- Pre-Approval:
- A lender's conditional commitment to loan you a specific amount based on your financial profile.
Contact us today and we can connect you with trusted local lenders who specialize in North Scottsdale luxury real estate.
CONTACT US
Sherry Gaertner - Tibbetts
Mobile: (602) 369-6600
Office: (480) 970-8181
4518 East Zenith Lane
Cave Creek, AZ 85331
