Acquiring a home is the dream of every Orlando resident following the serenity of the place and the inviting environment. The high cost of living leading to low credit score and the high house prices has made it almost impossible for the residents to purchase a home in the city. However, banks and other lending institutions have brought hope to many people who would like to buy a real estate property by providing mortgage loans. A mortgage is a loan given to the homebuyer to aid in the purchase of a home or a real estate property. The mortgage has high-interest rates and comes with a specified payment period.
Housing Rates and Schooling in Orlando
The housing rates at Orlando have risen at an alarming rate in the last few years and statistics show that the home values are bound to have a 4.3% increase in the year. The median homes price currently stands as $245,000, which is lower than the $272,900 for the homes in Florida. Orlando has 161 schools, so finding one with a good system should not be a problem. Both public and private schools compete nicely with the other schools nationally with most of them receiving a 10-star ranking.
The Cost of Living in Orlando
The cost of living in Orlando is slightly higher with a median household income of $50,256, and the cost of living is 1.2% higher than the national average. The city attracts a large number of tourists every year making tourism a major source of income. Industries such as aerospace and technology also attract a large number of residents to the area. Orlando crime rate is 112% higher than Florida and 143% greater than the nations mean with most common crimes being assault and the least of them being murder.
Types of Mortgage Loans
It is now clear why the housing costs are slightly higher in Orlando following the cost of living in the area. However, various lenders are ready to make your dream come true by providing excellent mortgage rates and options to the residents. There are different types of mortgages available, but they all work in the same way. This involves borrowing money to buy property, paying interests on the loan, and repaying the money in installments. The lenders provide different repayment methods as well as interest rates.
Lenders provide different types of mortgage loans to the homebuyers. Talking to a real estate agent or a mortgage banker in Orlando will help you understand the differences in the loans and choose the right one that suits your needs. Some of the common ones include:
- Fixed rate mortgage– in this type of loan, the mortgage lender determines a set principal amount and an interest rate. The rates are not bound to change unless you spread the payments over an extended period of 10, 15, 20, 25, or 30 years.
- Adjustable rate mortgage– in this type of loans, the rates can change on a monthly or yearly basis. The mortgage may begin with a fixed amount but later switch to an adjustable type after several years of payment.
- Government insured loans– the Department of Housing and Urban Development regulates this kind of loans. The government insures the lenders from any losses caused by defaulters. Other government-insured mortgages include FHA mortgage, VA loans, and the RHS loans.
- The conventional mortgage- the federal government does not insure or guarantee this type of loans.
Other types of mortgage loans in Orlando include the Confirming loan and Jumbo loan. Borrowers need to research about the loans requirements and conditions before making a decision. It is important to find a mortgage professional to help you through the mortgage process right from the interest rates, type of loans, and down payment options as well as repayment method.