Whether buying your first house, retirement residence or vacation property, your home mortgage loan terms significantly impact your monthly payments and financial outlook. Fortunately, financial institutions like First Merchants Bank offer several mortgage solutions to support every lifestyle and budget. With low interest rates, it’s truly a buyer’s market.

Fixed rate versus adjustable rate mortgage solutions

Many homebuyers want a predictable monthly payment and therefore opt for a fixed rate mortgage. A fixed rate mortgage means the interest rate remains constant across the life of the loan, so you’ll typically have consistent monthly payments. Popular fixed rate home loans include 30-year and 15-year mortgages.

On the other hand, adjustable rate mortgages fluctuate over time. Generally, adjustable rate mortgages initially offer lower interest rates than a fixed rate mortgage but can rise as the term progresses and market conditions shift. The lower initial interest rate appeals to some homebuyers, yet others prefer a more predictable mortgage solution, like a fixed rate home loan.

When choosing between a fixed rate and adjustable rate mortgage, consider how long you plan to remain in your home. If you’re only staying for a few years, an adjustable rate mortgage may prove more affordable. If you’re having trouble deciding which direction to go, try talking to a lending expert at a mortgage center.

Mortgage solutions for every budget

While shopping around for a better mortgage, homebuyers can select from a variety of conventional options, as well as government-sponsored loans designed for buyers who can’t qualify for traditional mortgages.

A conventional mortgage is an agreement between the homebuyer and a private lending institution, such as a bank or credit union. Conventional loans include fixed rate mortgages, adjustable rate mortgages, jumbo mortgages, construction loans and more. They offer varying loan terms and usually require a down payment of 5% to 10% — or 20% for investment properties.

First Merchants can also help homebuyers qualify for better mortgages through various government sponsored loans. The Federal Housing Administration (FHA), the Veterans Administration (VA) and the United States Department of Agriculture offer mortgage solutions for qualifying homebuyers.

FHA mortgages require lower down payments — sometimes asking for as little as 3.5% at closing. Because the U.S. government backs the loan, homebuyers face less stringent borrowing terms on income limits and credit history. Not all prospective buyers will qualify for FHA loans; eligibility depends several factors, including your income and credit history, and the home must be appraised by an FHA-approved appraiser. Contact your local mortgage center to learn more.

USDA-sponsored loans help low- to middle-income households buy, build or repair homes in rural areas. USDA loans require no down payment and offer flexible qualifying guidelines.

VA mortgage solutions provide favorable lending terms, such as low interest rates, and require no down payment for active service members, eligible veterans and surviving spouses.

Evaluate your options with First Merchants online mortgage center

First Merchants Bank’s online mortgage center makes it easy to weigh your home loan options. Browse available loan types, and use our online mortgage calculator to compare your monthly payment.

Take advantage of our 90-day pre-approval and online application to jump-start the home-buying process, better negotiate with sellers and finance your dream home.

Ready to find better mortgage solutions to fit your lifestyle and financial goals? Speak with a First Merchants Bank lending expert today by calling 1.800.205.3464 or visiting a local branch.