Buying a Home in Austin

Buying a home in or around Austin and the Texas Hill Country doesn’t have to be a burden. Austin real estate agent Curtis Jordan of Integrity Realty Services will put all his knowledge and expertise¬† in the Austin Real Estate industry to work for you. Whether you are looking for a single-family home, a condo, a duplex, or even a foreclosed or pre-foreclosed property, Curtis Jordan and Integrity Realty Services will work hard to help you find the right home. HUD, REO, and bank-owned properties are also available.

Here is some important loan information that can help.

Loan Programs

What Are The Basic Loan Types?

There are many loan products designed to meet the borrowers individual criteria. Most of these products fall under a few basic loan types.

15-Year and 30-Year Fixed Rate:
Payment and rate stay the same from start to finish.

5 and 7 Year Balloons:
Lower start rate. Some of the balloon programs may be converted to an adjustable rate or a fixed rate after the 5 or 7 years, with very low fee and attractive rate.

Adjustable Rate Mortgage (ARM):
Lowest start rate. Adjusts either every 6 months or every 12 months depending on program and grade and is based on the economy, 6% ceiling for prime and 7% ceiling for sub-prime.

5/1 and 7/1 Fixed Rate:
Rate is fixed for the first 5 or 7 years, then shifts to an adjustable rate mortgage (ARM).

2/28 and 3/27 ARM:
An ARM program that is fixed for the first 2 or 3 years, then shifts into a 6 month adjustable rate mortgage. It is a sub-prime program giving you a rate lower than the sub-prime 30-year fixed. If you have had credit problems, it allows a window of time for credit rebuilding and seasoning after which you should refinance this loan.


What Should I Look For?

Are You Moving in the First Few Years?
You may want to consider a balloon mortgage. Some balloon loans allow you to convert to a longer term if you find the 5 or 7 years was not enough time. Conversions are easy and reasonable. When you consider this loan, ask if the program is convertible.

Do You Need the Lowest Possible Rate to Qualify?
To qualify for the house you want, an adjustable rate or a 7-year balloon may be the answer.

Do You Want a Fixed Predictable Loan?
If you want a fixed predictable loan for a long time, the 15-year or 30-year fixed is probably the best, especially when you have good credit.


Which Program is Best for Me?

 Here are a few things to keep in mind when selecting a loan program.

Residency
Recommended Program
1-3 Years
3/1 ARM, 1 year ARM, or 6 month ARM
3-5 Years
5/1 ARM
5-7 Years
7/1 ARM
7-10 Years
10/1 ARM, 30 year fixed or 15 year fixed
10+ Years
30 year fixed or 15 year fixed

Curtis Jordan
Integrity Realty Services
205 S. Commons Ford Road
Austin, TX 78733
(512) 402-9300
curtis@integrityrs.com