Home Loans in Midland Texas

Midland is the 24th most populous city in Texas, founded as a midway point between Fort Worth and El Paso on the Texas and Pacific Railroad in 1881. It is the hometown of former First Lady Laura Bush, and the onetime home of former Presidents George H. W. Bush and George W. Bush, and former First Lady Barbara Bush.

A home is a good investment, but many homebuyers – especially first-time homebuyers – make the mistake of buying a home before they are financially ready or fully understand what huge responsibility it is.

If you’re going to pay thousands of dollars into a mortgage for the next 30 years, it’s important that you know exactly what a mortgage is and what it entails.

Understanding Mortgages

A mortgage is made up of three basic parts: the down payment, the monthly payments, and the fees.

The monthly payment is the amount required to repay the mortgage over the term of the loan and includes both principal and interest payments. Property taxes and other fees are also typically included in the monthly payments.

The fees are the various costs associated with obtaining the loan, such as the closing costs.

The down payment is the amount paid upfront to obtain a mortgage. The larger your down payments, the more favorable your financing terms will be. 

If you put a 20% down payment or more, you’ll save money on your mortgage, pay fewer fees, and build equity in your home more quickly.

Conventional vs Government-Insured Mortgages

Mortgages are classified into two categories: conventional loans, which are issued by a private lender or banking institution, and government-backed loans.

• Conventional loans are any loans that are not government-insured, guaranteed, or subsidized. This means that if the borrower defaults on the loan, the lender faces financial loss. 

By and large, conventional loans are more difficult to qualify for than government-backed loans. Individuals who typically qualify for a conventional mortgage have three characteristics: good credit, consistent income, and the ability to make a down payment.

• Government-insured loans, also known as non-traditional loans, are exactly what they sound like: government-insured loans. FHA loans and VA loans are two popular mortgages guaranteed by the government.

Government-insured mortgages are typically easier to qualify for, requiring less money down and a lower credit score, making them an ideal solution for those who cannot qualify for a conventional loan. Additionally, they are typically less expensive to close than conventional loans. All of these factors contribute to the fact that government-insured loans are an excellent option for first-time homebuyers.

Fixed-Rate vs Adjustable-Rate Mortgage

After selecting a loan, you’ll need to determine whether you want a fixed or adjustable-rate mortgage. Your selection determines the rate of interest you will pay.

A fixed-rate mortgage requires the borrower to make the same monthly payment throughout the loan’s term. When you sign the loan documents, you agree to a fixed interest rate that will not change. This is the optimal loan type if interest rates are low at the time you obtain a mortgage.

With an adjustable-rate mortgage, the interest rate on your loan can fluctuate in response to market conditions. If interest rates increase, your mortgage rate and the monthly payment will increase as well. If interest rates fall, your mortgage rate will fall along with it, as will your monthly payment. 

To protect against rising interest rates, it is generally prudent to maintain a fixed-rate loan. You can refinance your mortgage if rates fall to take advantage of the lower rates.

Mortgage Lender In Midland, Texas

If you’re in the market for a new home in Midland, Texas, our home loan specialists can help you conduct a needs analysis of your situation in order to recommend and offer the optimal home loan product for your unique circumstances.

Here at Capital Home Mortgage, we strive to make homeownership an enjoyable experience. As such, we do our best to provide superior service and to facilitate a stress-free home buying process for our clients.

We Got You!

Because each home purchase is unique, we begin by listening to your needs and goals in order to recommend the best course of action.

Whether it’s your first time buying a home or you’re an experienced buyer looking for investment properties, we have home loan programs to fit your needs and budget.

You can rely on our capable and experienced loan officers to offer you guidance and valuable insight into the home buying market, as well as the assistance necessary to increase your confidence in your choices.

Thank you again for your interest in our services and we look forward to providing you next Midland mortgage loan.