What are the advantages of fixed rate versus adjustable rate loans?

With a fixed-rate loan, your monthly payment of principal and interest never change for the life of your loan. Your property taxes may go up and so might your homeowner's insurance premium part of your monthly payment, but generally with a fixed-rate loan your payment will be very stable.

Making dreams come true with zero down mortgages

At GMFC we dont think that saving for a down payment should be the reason you put your dreams on hold.  We can help you buy your dream home with a zero down mortgage loan.  Youll not only be able to afford a home sooner, you'll probably be able to afford more home.  With a zero down mortgage, the amount of loan you can qualify for is determined by your ability to make your monthly payments rather than how large a down payment you've saved. And, for most buyers, this means qualifying for a larger loan.

Which Loan is Right for Me?

15 year mortgage

You pay off a 15-year fixed-rate mortgage in half the time it would take you to pay off the traditional 30-year fixed-rate mortgage. This shorter term makes it possible for you to build up equity in your home faster, which can let you move up more quickly to a more expensive home or save more in preparation for retirement or a child's education. This loan is particularly attractive if you're refinancing your mortgage because you can shorten your loan term plus enjoy a lower interest rate.

Most people refinance their mortgages to get a lower interest rate. The lower rate translates into a faster mortgage payoff or a lower monthly payment.

But, a low rate isn't the only reason you should consider refinancing. Refinancing can also help you:
1. Lower your monthly mortgage payment
2. Pay off your mortgage more quickly
3. Consolidate debt

Most mortgages require that you pay back some principal with each payment -- a little bit at first, a lot more as time passes. Interest-only loans skip that requirement in the early years of the loan so that none of your payment goes toward paying down principal. The result is a significantly smaller initial payment compared with other options, such as a traditional 30-year fixed-rate mortgage where you pay both principle and interest.

It is said that purchasing a home is one of the most stressful tasks people will go through. This isn't true when you choose Guaranteed Mortgage Funding Corporation as your mortgage company. Our team of knowledgeable mortgage consultants will guide you through every step of purchasing a home. Whether you have owned a home before or you are a first time home buyer, we have dozens of programs to help make your dream a reality.

ARMs Offer Lower Rates

Staying in the same home for 30 years may not be in your plans -- which is one reason to consider an adjustable-rate mortgage (ARM). An ARM generally offers a lower initial interest rate than a fixed-rate mortgage. With lower monthly payments in the initial years of your mortgage, you may qualify for a larger mortgage amount if you choose.

The primary advantage of a 40-year fixed-rate mortgage is making monthly payments more affordable without taking on the risk of an adjustable rate. In addition to buyers in high-cost areas, the 40-year fixed mortgage also appeals to buyers with small down payments. Reducing the monthly payments on large loan amounts is accomplished by stretching the repayment term by an extra 10 years.

Choosing a traditional 30 year fixed rate mortgage allows your mortgage rate and payment to remain the same, regardless of how high interest rates rise.

A fixed-rate and payment make it easy to budget your finances and avoid the risk of rising mortgage rates.