Mortgage Loans – Conventional, FHA, VA

Hello. My name is Tom Ciosek with Lakeside Advantage Mortgage. I’m the owner. We’re a full-service mortgage company in Shelby Township. I specialize in mortgages. We’ve been doing it for a long time. I’ve been in business for twenty-five years in the mortgage business. We help homeowners and homeowners throughout Michigan purchase and refinance homes.

Exercise 1
Exercise 2

The most popular way of buying a home is a conventional mortgage and a conventional mortgage involves a ten percent (10%) down payment and the remainder would be loaned by the the bank. The banks that we work with include Bank of America. They also include Wells Fargo. Large banks like that actually help us finance the property.

Typically, a thirty-year mortgage is what a buyer would secure even though it’s becoming more and more popular for homeowners to do a twenty-year loan, a fifteen-year loan, and even a ten-year loan. The advantage of a shorter term obviously you pay the loan off faster than if the loan is for thirty years. You’re paying a lot of interest at the beginning of those loans and very little principal at the beginning of a thirty-year loan. So, if you could qualify for a twenty-year loan or a fifteen-year loan or a ten-year loan, you’d save quite a bit of money in interest over the life of the loan.

Also, the second most common way to get a mortgage is FHA. FHA is insured by the government and the advantage of an FHA loan is it’s only three and a half percent down versus a ten percent down conventional mortgage. So, typically an FHA buyer wouldn’t have as much cash reserves and cash on hand to purchase a property, so they would put up three and a half percent as a down payment rather than the ten percent down conventional. Be clear, though, that when you’re buying a property, more than just the down payment, you have to pay the closing costs and the prepaids. The closing costs are all the costs of the bank that they charge and the prepaids are the taxes and the insurance. So, by the time you weigh out everything, a down payment, the closing costs and the prepaids would represent the total acquisition costs of buying the property.

Finally, the third type of loan out there is a VA mortgage. A VA mortgage is for the qualified veterans out there and that loan is actually a zero-down loan. So, you can get a zero-down loan today under VA up to four hundred and seventeen thousand (417,000). That’s the same amount also on a conventional loan that’s not considered a jumbo loan up to four hundred and seventeen thousand (417,000) is the is the borrowing power there.

Contact Tom:  Lakeside Advantage Mortgage Tom Ciosek 50712 Van Dyke Ave. Shelby Twp, Michigan 48317. Office: (586) 997-2529

Have some fun! Try these puzzles.

Puzzle #1 is usually easier than puzzle #2, but try all of them and decide for yourself!

All of the puzzles use words from the video. Feel free to print and copy the puzzles.

Mortgage Loans – Crossword #1


Mortgage Loans – Crossword #2


Mortgage Loans – Word Search #1


Mortgage Loans – Word Search #2


Mortgage Loans – Word Scramble #1


Mortgage Loans – Word Scramble #2



Speak Your Mind