Blog Layout

Pennsylvania Mortgage Types

Lisa Siranovich • Apr 30, 2012

Pennsylvania mortgage types can be broken down into six basic categories. Within each category are a number of specific loan types that can be written to accommodate most residential and commercial mortgage needs. With Pennsylvania mortgage rates at all time lows, it’s important to understand what each of these types are in order to quickly take advantage of this buyer’s market before both interest rates and home prices begin to rise again.


Primary Purchase


Whether you’re seeking a mortgage in Pittsburgh or anywhere else in the state, most mortgage borrowers fall into this loan category. With this type, the borrower is purchasing an existing home. In most cases the home is to be the primary residence, but for some people the purchase may be a second or vacation home, or even as an income generating property.


Refinance – Home Equity Line of Credit


When the value of your home exceeds the amount you owe, you may qualify to refinance your home at a lower rate. In some cases a well-timed refinance can be used to pay off an existing loan, a second loan, credit card balances or other debt.  It can also be used to make substantial improvements to a property. Additionally, the equity accumulated in the home may be accessed through a refinance known as a cash out refinance. In this scenario, funds distributed from the loan can generally be used for any purpose and do not need to be spent at one time.


New Construction


A new construction loan in Pennsylvania is ideal for the potential mortgage borrower who intends to build their property from the ground up. These types of mortgages are naturally different than other types because the loan in question is being issued based on a house that doesn’t exist yet. Therefore, specialized mortgage lenders, like Sail Mortgage, will be required to execute this type of loan properly.


Jumbo Mortgages


Many small local banks and credit unions often can’t fund very large loans, but other lenders, like Sail Mortgage, can. These types of loans can be used to pay for large or expensive houses, income properties and even investment properties where the loan amounts are generally measured in millions of dollars.


FHA/VA/USDA Loans


Customized loans for first time home buyers, veterans and farmers must be obtained from a Pennsylvania mortgage lender that is qualified to offer such specialized products, like Sail Mortgage. Often these types of loans come with specific benefits that are only applicable to a certain type of mortgage borrower who must meet very specific requirements.


Reverse Mortgages


A reverse mortgage is aptly named because with this type of product the “lender” or bank pays you for your home. Borrowers who are aged 62 or older can qualify for this type of “loan,” during which the lender provides a line of credit based on a number of variables, primarily the value of the home. The homeowner may draw upon this line of credit to pay for living expenses or other needs until the last surviving homeowner passes or the home is sold, at which time the loan will be repaid from proceeds of the sale.


Regardless of the type of loan you need, it’s absolutely imperative that you take advantage of historically low interest rates before the market begins to shift. To find out more and for an immediate consultation, call the number at the top of your screen now.

By Lisa Siranovich 29 Jun, 2019
By Chris Vendilli 27 Sep, 2012
By Chris Vendilli 16 Sep, 2012
By Steve Taylor 26 Aug, 2012
FOR IMMEDIATE RELEASE Leading Pittsburgh mortgage company Sail Mortgage issued a public statement today that warns mortgage borrowers against rate timidity. PITTSBURGH, Pennsylvania August 23, 2012 Sail Mortgage – a Pittsburgh mortgage lender – indicated this week that rate timidity in the mortgage and real estate markets could be a bad approach for many homebuyers. Lisa Siranovich, President of the company, stated that timid behavior as a result of waiting for better rates could actually cost more in the long run; “Well the obvious response to the question of waiting for a better rate is that it might never come and in fact could increase,” Siranovich said recently, “but overall buying a home is about a lot more than just the rate.” Siranovich would know. As President of the Pittsburgh mortgage firm, she’s seen many mortgage borrowers wait too long and end up not only with a higher rate, but missing out on the home they truly wanted. “The question you should be asking yourself isn’t “are rates going to go lower,” but instead; “is now the right time for me to buy a home?” There are many factors that go into buying or refinancing a home or property, and while saving money is obviously one of those factors, there are much more important ones to consider.” Siranovich went on to explain that factors like the location of the home and its proximity to good schools are probably the most important, while the actual home itself is also a major consideration; the need for repairs or improvements could eventually far outweigh any savings by waiting for a lower rate (that might never materialize). Even more importantly, she stressed the importance of the buyer’s overall financial picture as being paramount; “Buying a home is a lifetime investment and for most people, it’s their biggest investment. Understanding how your financial picture will change over the term of your mortgage is, in my opinion, of more importance than holding out against the right home or property while you wait for rates to go down. If two years from now rates do go down a little, but you missed out on the right home for your budget and personal needs, then your regret probably won’t be eased much by the relatively small savings you’ll realize over the life of your slightly lower-rate mortgage.” Sail Mortgage is a privately held Wexford-based mortgage provider servicing the greater Pittsburgh area and beyond. For an immediate consultation or for a press kit, please visit: http://www.sailmortgage.com or call (724) 934-2800
By Lisa Siranovich 26 Aug, 2012
By Lisa Siranovich 08 Aug, 2012
By Lisa Siranovich 29 Jul, 2012
More Posts
Share by: