Learn about different types of mortgage loans in Utah, such as conventional, FHA, or VA. Decide which loan best fits your needs, a fixed rate mortgage or an adjustable rate mortgage. Is a shorter term or a longer loan term better for you and your goals?
Talk to your Utah mortgage broker about mortgage rates to learn what you may expect to pay, and how different loan options affect rates. For example, you might compare a 30-year fixed rate mortgage against a 15-year fixed rate mortgage to see how the interest rates compare.
You may have already started looking at homes, or you may prefer to explore your loan choices a bit first before getting started looking at new homes.
However, don’t wait until you’ve found a home before you start thinking about your loan options. You want to have a good idea of what kind of mortgage loan is right for you before you make an offer on a new home.
Many homebuyers choose to put less than 20% down. When you put less than 20% down, you will likely need to pay for mortgage insurance. Mortgage insurance adds to your monthly payment and in some cases your loan costs, but it allows you to get a loan you might otherwise be unable to get. Mortgage insurance protects the lender if you fall behind on your payments, which means lenders are more willing to lend to you. Mortgage insurance doesn’t protect you or pay your mortgage for you. Learn more about mortgage insurance and how it works.
A Federal Housing Administration loan (FHA loan)
A conventional loan with private mortgage insurance (PMI)
For active duty servicemembers, veterans, or surviving spouses, a VA loan
For residents of small towns or rural areas, a USDA Rural Housing loan
Many local cities or counties have down payment assistance grant funds available for first-time homebuyers with low to moderate income.
If you’re considering a grant program, ask questions and find out whether there are any conditions you have to meet. For example, you may need to pay the money back if you don’t live in the home for a certain amount of time.