Loan Comparison Guide: $400,000 Home in Moreno Valley

Buying a home involves balancing upfront costs and monthly payments. Understanding your mortgage options is key to making an informed decision. Here’s a simplified guide to the most common loan types for a $400,000 home in Moreno Valley.

Types of Loans

• Fixed-Rate Mortgages: Stable interest rate for 15–30 years, predictable monthly payments.
• Adjustable-Rate Mortgages (ARMs): Lower initial rates that adjust after a set period; suited for short-term homeowners.
• FHA Loans: Lower down payments, flexible credit requirements, ideal for first-time buyers.
• VA Loans: No down payment, no mortgage insurance for eligible veterans or active military.
• USDA Loans: Zero down payment for rural homes, low interest rates.

Key Factors to Compare

• Interest Rate – Impacts monthly payment and total cost.
• Loan Term – Shorter term = higher payments but less interest over time.
• Down Payment & PMI – Lower down payments may require mortgage insurance.
• Closing Costs – Fees paid at closing vary by loan type.
• Prepayment Penalties – Important if you plan to refinance or sell early.

$400,000 Home Loan Comparison

Assumptions:

• Property Taxes: $450/mo (~1.35% of home price)
• Homeowner’s Insurance: $90/mo
• Interest Rates: HomeReady/Conventional 6.75%, FHA 6.25%, VA 6.50%
• PMI/MIP included where applicable

Choosing the Right Loan

• HomeReady/Home Possible: Low down payment, first-time buyer friendly, income limits apply.
• FHA: Easier approval for lower credit scores.
• Conventional: Strong credit, lower long-term costs, ideal for long-term homeowners.
• VA: Veterans or active military; lowest upfront and monthly costs.

Next Steps

Consider your income, credit score, and long-term plans before choosing a loan. A personalized comparison can show you how different down payments, credit scores, and rate options affect your monthly payment.

Contact me for a custom breakdown tailored to your situation and start your path to homeownership with clarity and confidence.