Archive for October 2018

6 Different Types of Mortgages

When thinking about purchasing a home, an important piece to think about early on in the process is how you are going to finance your property. There are so many loan products available to consumers now, so sometimes it is hard to know which one is best suited for your needs. Below you will find a description of some of the most common types of mortgage loans. However, if you want to get suggestions on the best types of mortgage loans for your situation, you should contact a mortgage loan originator who can get you pre-approved.

Fixed Rate Mortgage Loan

To get a basic idea about mortgage loans, you need to know about a fixed rate mortgage. A fixed rate mortgage is offered for a specific term of years where the interest rate remains the same on the note throughout the entire term and is a fully amortizing mortgage. The most common type of fixed rate mortgage is the 30-year. However, you can have a fixed rate mortgage with a term between 10 and 50 years. The average hold time for a home with a fixed rate mortgage is 5 years.

Adjustable Rate Mortgage (ARM) Loan

Contrary to the fixed rate mortgage, the adjustable rate mortgage is one where the interest rate on the principal amount due fluctuates periodically. With an ARM, you can choose a variety of payment options and index rates. However, if you choose to make minimum payments in an ARM, you may negatively amortize your loan.

Federal Housing Administration (FHA) Loan

FHA loans are mortgage loans that are entirely backed by the government, but require the buyer to pay mortgage insurance until the loan-to-value ratio is 80%, or in other words, when you have 20% equity in the home. Often, these types of mortgages are great for first-time home buyers because there is a very minimal down payment required and FICO credit scores do not matter as much as with other loan products.

VA Loan

If you are a U.S. Armed Forces veteran, you should look into financing your home through a VA loan. For this type of loan, the borrower does not need a down payment. The loan is guaranteed by the Department of Veterans Affairs, but is funded by a conventional lender. The only thing you might be wary of and may need to ask your lender more information about is the VA Funding Fee and what costs are associated with it.

Reverse Mortgage

Reverse mortgage loans have become very popular loan products with consumers over 62 years of age. Instead of making monthly payments on the mortgage, the equity in the home instead pays the consumer until they no longer reside in the home or pass away. The interest rates with these types of loans can be fixed or adjustable. To qualify for one of these loans, you must go through some mandatory counseling to make sure you are informed about the effects that this loan has on your home.

If you have any lingering questions about which mortgage loan product you should choose, please do not hesitate to reach out to me via phone or email and I would be more than happy to assist you in this process.

3 Museums to Visit in and around Huntley, IL

If you are new to Huntley or have been a long-time resident for a while, there is still a lot to learn about a town and its culture. Huntley is home to a number of museums that offer educational and historical information to visitors. If you are looking to brush up on your history, look no further than these museums either in or not far from the town of Huntley, Illinois.

The Huntley Historical Society

If you are looking to learn a little more about the humble beginnings of the town of Huntley,come and visit The Huntley Historical Society. The Society’s mission is to preserve and promote the town’s history through educating its visitors and surrounding citizens and engaging in community activities. To get involved, you can contact the board for membership opportunities and to learn more about local events. The more people that are interested in learning about the town’s history, the more events that the Society will be able to host and benefit from.

Lake in the Hills Historical Society

If you are looking to uncover some local history about Village of Lake in the Hills, then Lake in the Hills Historical Society can help. Its mission is to preserve and perpetuate the history of Village of Lake in the Hills, a community of settlers that came and converted the barren prairies to prosperous farmland. The Society also works to collect more information and date about the first settlers and promote true curiosity about this town’s unique, local history. You can tell the citizens that keep this Society growing have a true passion for preserving this slice of local origin and history. Visit the preserved Ford School or make a donation so that the Society may continue its preservation and education efforts long into the future.

Illinois Railway Museum

This museum located in Union, Illinois, which is not far from Huntley. It is known as the Museum in Motion because it is home to a number of pieces of railway transportation equipment. The museum’s mission is to educate visitors about the nation’s railroad and railway history. The neat thing about this museum is that it was all made possible through the hard work of volunteers that are very passionate about preserving this history. At one point, the railroad industry was the largest private employer. Additionally, the Illinois Railway Museum is a non-profit and runs entirely off of donations and revenue derived from ticket and on-site sales. The museum is composed of many different departments run by volunteer curators. These departments include the following: Electric Car, Steam, Diesel, Building & Ground, Track & Signal, and many more. Whatever age you are, as long as you enjoy the beauty of the railroad industry, there will be something here at the museum that will grab your attention.

Huntley is home to these three very unique museums; however, there are more museums to explore with Huntley being only one hour outside the heart of Chicago. If you would like more suggestions on interesting museums to explore around Huntley or in the greater Chicago area, please reach out to me via phone or email and I would be delighted to respond.