Choosing a Mortgage

When buying a new home, you’ll be faced with countless options, from how many bedrooms you want to what neighborhood you want to be in. You’ll also need to decide what type of mortgage is right for you. There are many different options, with different terms, from how long you have to pay off your loan to whether your interest rate is fixed or can change. It’s important to understand the differences and benefits of each type of mortgage so you can be sure to choose the loan that best suits your financial needs.

Mortgage Types

Fixed vs. ARM:

100% financing: Some lenders, including Navy Federal, offer 100% financing options* for qualified homebuyers. With this loan, you don’t have to make a down payment. These types of loans have a fixed-interest rate at Navy Federal.

This loan may be right for you if you:

don’t have money saved for a down payment

are a first-time homebuyer

prefer a fixed-rate loan

VA loan: This type of loan is available for eligible servicemembers. With a VA loan, you don’t have to make a down payment or pay private mortgage insurance (PMI), which is a fee typically charged to protect lenders from loan defaults. Your closing costs are also limited. A VA loan may be right for you if you:

are an eligible servicemember or unmarried surviving spouse

don’t have money saved for a down payment

want to avoid paying PMI

want lower closing costs

are looking for a loan with a lower interest rate

hope to pay off your mortgage early without incurring a penalty fee

*Navy Federal 100% financing loans include an additional funding fee, which may be financed up to the maximum loan amount. Available for purchase loans only. Product features subject to approval.

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