September 17th, 2018

Of all the steps you will take in life, few will be as profound or as impactful as the moment that you purchase a home. It is likely to be the largest purchase you make, and one that will not only impact your financial future but every day of your life that you spend living within that home. And while finding a great home isn't that difficult thanks to the many options on the market, what can be difficult is finding the right mortgage for your needs.

There are numerous things to consider, but three points are the most important. If you're ready to start shopping for your home, you'll need to know which loan option is the best for you. Here's a look at the three key things to consider.

Mortgage Type

You'll have two options here - conventional loans or those that are backed by the government. Conventional loan options are guaranteed by private lenders, while government-backed loans are insured by a branch of the US government. Government loan options include:

FHA Loans

These are designed for first time home buyers and those who struggle to qualify for traditional loans

VA Loans

Insured by the Department of Veterans Affairs, these are available to current military members and veterans

USDA Loans

These loans are focused on rural areas and those who meet various income level requirements

Each of these loans are backed by the US government and as such will often have lower down payment requirements, lower credit score requirements, and - in most cases - lower interest rates. Conventional loans are backed by private entities and as such are often harder to qualify for. However, they may be the only option if you don't qualify for government loan programs.

Interest Rates

Obviously, you want to secure the lowest possible interest rate when you secure a loan. But you also need to decide on a fixed or adjustable rate mortgage. Both have pros and cons to consider.

ARMs

Adjustable rates mortgage start off with much lower interest rates, then increase after a period of time. This means that monthly payments start low, but over the years could increase dramatically.

Fixed Rates

Fixed rate mortgages have interest rates that never change throughout the loan. They start with a slightly higher interest rate than an ARM will have, but won't change over time.

In general, the ARM is a better option for those who plan on selling their home in the future, while the fixed rate option is better for those who are planning on staying in their home for years to come.

Loan Size

Finally, you'll have to decide on the size of the loan. Conforming loans are capped at $453,100 in most locations. Going beyond the conforming limit means that you may end up with much higher interest rates and need a larger down payment in order to get the loan.

No matter the type of loan that you are looking for, contact a local mortgage expert today to get the right loan for your home purchase.

AP Mortgage

980 9th Street Suite 1780, Sacramento, CA 95814 707-592-1732

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At AP Mortgage, they embrace the concept of ownership with enthusiasm and optimism for the future of housing in America. As individuals, every employee at American Pacific Mortgage takes personal ownership in the process of originating home loans that will make your dream of ownership a reality.

Stephanie Uribe

My experience with Jason Mata surpassed all of my expectations. Jason is very professional and incredibly helpful. He is trustworthy and intelligent and has an extensive and in-depth knowledge of his field. During each of my many interactions with Jason it was abundantly clear to me that he truly cares for his clients and goes out of his way to ensure that we are well taken care of. His kindness and pleasant yet professional demeanor is very appreciated, especially as the home buying process is such a traditionally stressful life event. Jason made my experience as easy and enjoyable as possible. I highly recommend Jason Mata and his team to anyone - especially teachers such as myself. If I find myself buying another home in the greater Sacramento area in the future I will undoubtedly be calling up Jason!

02-01-2020

Phan Lu

Awesome team work!!! I GOT to meet Jason, he is AN awesome guy! He MADE sure you UNDERSTOOD the whole PROCESS of your loan.

05-03-2018

David Esquith

Over the years I have financed and refinanced my home and have always been reasonably pleased with the experience. This, however, was the first time with Jason Mata and American Pacific Mortgage -- and it was, easily, the best experience to date. Jason was always available and made sure that everything was clear. Additionally, the others with whom I interacted were consistently polite, informative, and timely with all communication. There were no glitches or snags which made this entire process completely uneventful and drama free. Without question, I would use Jason again if I needed to refinance and, also without question, will recommend him to anyone interested in obtaining a mortgage.

01-17-2020

Michelle Marzan

I was able to purchase my first home thanks to Jason Mata and his team at APM. He walked me through the home buying process, showed me all of my available loan options and was transparent with everything. Jason is extremely knowledgeable and quick to respond for any questions or concerns that I had. Would love to work with him and his team again.

02-18-2020

Yasuko Hashimoto

Jason made the mortgage process very easy. Even though my situation was a little unusual, Jason and Cacilie were very helpful. I recommend them to anybody.

03-14-2020

Louise B.

Where do I even begin?! Hands down BEST AGENT EVER! Jeremy is and was an amazing agent. I spoke with him over the phone first and he did not come off...

2020-01-23

Misty W.

Jeremy was extremely helpful with the loan for our first home. He communicated every step of the way and was really easy to work with, which made the buying...

2018-03-20

Desiree S.

Jeremy was so calm and supportive and gave me direction every step of the way! Even when I was anxious out of my mind throughout the whole process. He kept...

2018-06-17

Lu Bui

Jeremy is everything you would want in an agent. As a first time home buyer, I could have not made a better decision when work with Jeremy. He not only met my expectations but went above and beyond even after I closed and he handed me the keys. He is still helping me out! The few things that really amazed me was how much knowledge he had and he was in strong support of ensuring his clients had the same knowledge. I've learned so much from Jeremy even after my millions of questions. He took care of things that I didnt realize until I would have a freak out. That was the funny part. I'd have freak outs for no reason because id tell jeremy my concerns and he would ALWAYS respond with "oh i already got that taken care of". He knows the value of a dollar meaning he will go to the ends of the earth to ensure you are satisfied with your loan terms, purchase agreement, etc. He sets you up for success. The best part is, he still sticks around to ensure you continue to be successful and comfortable with your purchase after everything is signed and done. I guarantee you will not go wrong or regret working with Jeremy.

2020-01-24

Carina Kool

Jeremy was a pleasure to work with. He was very responsive to all of our inquires. We highly recommend him to anyone looking to purchase a home or to refinance their home.

2019-07-24

Melanie Jordan

Jeremy was really great to work with! He was very responsive to all of my requests and made the entire loan process very easy to understand. I highly recommend Jeremy to anyone looking to buy or refinance!

2018-01-09

Dustin Dravland Robinson

If you don’t think you can afford to own your own home or if you want the best pricing/terms on the purchase of an investment property, talk to Jeremy! Jeremy has amazingly innovative lending structures to help just about anyone (and anywhere) get onto the home ownership ladder and get off the rental circuit. I highly recommend Jeremy as a lender after he has consistently helped many of my clients get pre-approved and find their dream home after they never thought it was possible. Call/Text/Email Jeremy today! Sincerely, Dustin Dravland Robinson, Realtor who has sold over 100+ homes with over a decade of experience in California real estate.