August 22, 2017

Which Mortgage Loan is Right for You?

Home Buying Mortgage

So you're thinking about purchasing a home. It's a big decision and one that comes with many questions. Questions like, "What home loan should I choose?" or "What's the difference between all these mortgage loan options?" We get the confusion and stress that can arise when making these decisions. CorTrust is here to help alleviate your stress and teach you the key differences between our various home loan options.

Thirty-Year Fixed-Rate Mortgage

The traditional thirty-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable-rate loans. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate loans and may be a better deal in the long run, because you can lock in the rate for the life of your loan.

Adjustable-Rate Mortgage (ARM)

An ARM is a mortgage whose rate of interest is adjusted periodically to reflect market conditions. This means that the monthly payments can go up or down.

First Time Home Buyers

These loan programs are offered by the South Dakota Housing Development Authority and the Minnesota Housing Finance Agency with the first time home buyer in mind. The program offers down payment and closing cost assistance for eligible home buyers who qualify. These loans have interest rates that are attractive, however there are income and other qualification requirements, so contact us to see if this program is right for you.


This government guaranteed housing program requires a small, or in the case of VA loans, no down payment. FHA loans benefit people whose housing payments will be a large chunk of take-home pay and/or individuals with low credit scores. VA loans are available to most active-duty military and veterans.

Jumbo Loans

We offer to eligible borrowers loans of up to $1,500,000 for the purchase or refinance of your primary residence, second home, or investment properties. Our MPF Direct Loan Program is for loan amounts in excess of a conventional loan maximum limit of $548,250. We offer highly competitive rates with a variety of loan terms, including fixed rate and hybrid ARMs.

Learning more about the mortgage loans available to you is an important step in the home buying process. To find out more about the home loan options available, schedule a free consultation with a CorTrust Mortgage Specialist.