Mortgage loans explained 2018 (FAST!)


I am going to tell you about the
three major types of mortgage loans in 2018. And it’s coming up right now. Hello and welcome. If this is your first
time on my channel, My name’s Matthew
Tortorelli and I’m a mortgage loan officer in
California, Arizona, and Texas. And if you like great
content like this, consider subscribing. Now, let’s get into the content. You saw the title, mortgage
loans explained 2018. Let’s go through it. So let’s start
with conventional. Conventional loans
are great if you have great to excellent credit. They are just phenomenal loans. They come in all
shapes and sizes and are the most flexible
in what can be accomplished. So if you’re looking to
buy a type of investment property or second
home, you’re looking for a conventional loan. You may not want to get a
conventional loan though if your qualifying credit
score is under 700. This is because assuming
you’re not putting 20% down, the interest rate over
FHA is substantial if you don’t have ideal credit. On top of that interest
rate not being ideal, again, if you’re not putting 20%
down, the mortgage insurance can be massive. Just to give you an
example, MI for FHA loans, with few exceptions, is
0.85% of the loan amount per year divided by 12 months. That’s how much you’re
MI is per month. With conventional
under 700 FICO, I’ve seen that go as high
as 1.17% percent per year divided by 12 months. That’s how much your MI
could be with conventional. It could even be more. That’s just from my
personal experience. Now let’s go FHA. So an FHA loan might be
the right choice for you if you have less
than perfect credit. FHA will allow you to qualify
all the way down to 580 FICO. And that’s just fantastic. You can even qualify
lower than that. But that’s a separate topic. That gets a little complicated. But for the most
part 580 and above you’re good to go with FHA. It’s a fantastic
loan in that way. And if you’re tighter on
your debt-to-income ratio, if you have some higher
monthly expenses [INAUDIBLE] for my debt-to-income
ratio episode right there. Boom. So if you have a lot of debt
on you every single month you can actually go with a
higher debt-to-income ratio with FHA. We’ve rambled on
enough about FHA. Let’s go to VA. VA is probably the best
way you can borrow money on God’s green earth. It’s fantastic. You’re going to get the
most competitive interest rate normally out of the
three options that we just talked about. You’re going to get
no mortgage insurance and you can borrow up to 100%
in the value of the property. That means nothing down. So if you can get a VA
loan, get a VA loan. If not, you’ve heard
the other tow options. Depending on what
court up play ball in– There you go. And by the way, if you ever
want to reach out and talk to me and ask me some questions, I’ll
throw my number up right here. But again, My name’s
Matthew Tortorelli, number’s 602-345-1781. Feel free to hit me up anytime. Now let’s roll the outro. Peace. Thank you so much
everyone for watching. Please make sure you
smash that like button and leave a comment below. I will be there to
continue the conversation. And if you like
this content, please make sure to subscribe and
follow me on social media. That’s Instagram
@the_mortgage-don and Facebook as Matthew Tortorelli,
loan officer. Thank you again. And have a great one everyone.

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