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Mortgage Comparison

What types of mortgages are available?

Different kinds of mortgages fit different financing needs. Mortgage loans can be categorized several different ways.

Fixed-Rate vs. Adjustable-Rate Loans

Generally, loans can fall into two categories, fixed-rate and adjustable rate mortgages (ARM). The chart below compares these options. Within those categories, loans are also issued for a specific term, or number of years. Your monthly payments are structured so that you can pay off your loan within that time period.

Government vs. Conventional Loans

Unlike conventional loans, government secured loans are backed by a federal agency, like the Federal Housing Administration or U.S. Dept. of Veterans Affairs. These loans are insured by the government to protect the lender in case of default. They generally offer lower interest rates and down payment requirements. However, they do have specific eligibility requirements. For example, VA loans are only available to Veterans, and FHA loans have loan amount restrictions based on county of residence; you typically don’t see these restrictions with conventional loans.

Conforming vs. Jumbo Loans

Conventional mortgages are classified as conforming when the loan amount is less than or equal to $417,000 (single unit residential). Loans greater than this amount are considered jumbo loans. Jumbo loans often come with higher interest rates, larger down payment requirements and more stringent qualifying guidelines.

Loans with or without Mortgage Insurance

If you make a down payment of less than 20 percent of your home’s purchase price, most lenders will require you to pay some type of mortgage insurance (MI) premium. Costs may vary based on the type of loan, your credit profile and the actual down payment amount. MI is usually calculated as a percentage of the total loan amount and is typically added directly to your monthly loan payment. However, certain programs allow you to finance MI into the loan, paying a one-time upfront payment or accepting a higher interest rate in lieu of monthly payments. Depending on the type of loan, MI payments may continue for the life of the loan or last for a specified duration.

Although there are several different types of mortgage options, the most common ones among consumers are fixed rate and adjustable rate. Here’s how they differ:

Fixed-Rate MortgageAdjustable-Rate Mortgage (ARM)
Features

  • Interest rate stays the same for the life of the loan

  • The total principal + interest payment is the same every month

  • Loan is fully paid off by the end of the loan term and considered fully amortized


  • Interest rate is only fixed for an initial period of time

    • At the end of the fixed-rate period, the interest rate can adjust either up or down on a monthly, but typically annual, basis
  • The total principal + interest payment may increase or decrease over the life of the loan

  • Loan is fully paid off by the end of the loan term and considered fully amortized
Considerations

  • Provides stability and security with stable fixed payments

  • Best if you plan to stay in the home at least seven years

  • Interest rate may be higher than that of an adjustable-rate loan


  • Interest rate fluctuation is always a factor once the fixed-rate period has ended

  • Initial interest rate may be lower than that of a fixed-rate loan, resulting in increased buying power

  • Offers flexibility of having a lower payment initially

  • May make sense for buyers to move/sell before the fixed-rate period ends

"They really explained the process to us very well and made us feel very comfortable, specifically Jeanie Byland. I have never asked a question that I felt dumb about. They really wanted to educate us and have been fantastic. The interest rates changed one day and they called me to say, ‘Hey we might ought to look into refinancing your loan’. I really felt like they had our best interest at heart."

Steve

"I have had mortgages since 2004 in Columbia and have gone through a couple of banks, but over the last several years, the last couple of houses have been with Mid America Mortgage Services, Inc. Michelle has told us many times, 'I am not going to put you in a situation I am not comfortable with you being in, regardless of what it means for our company'.

Heidi always has a smile on her face and when you walk through the door, they recognize you and say “Hi”. I definitely recommend anyone who is in the home buying, purchasing, refinancing, upgrading business to go to Mid America Mortgage Services, Inc, ask for Michelle because they are going to be the best person you can work with."

John

"I knew Jeanie Byland for a long time. She made the process so easy. One of the things I probably appreciated the most was that she didn't want to spoil the excitement of closing on a new house by showing up on closing day finding out that we owe a lot more than we thought. They were upfront with that information right from the get-go, and that’s because it’s just like they say, ‘They wouldn’t put you in a loan that they would be comfortable taking themselves.’”

Jamie

"One of the main things that I loved about Michelle was she was so organized. She would meet us at any location she needed to, and to be honest she had the absolute lowest interest rate. They were always very transparent with fees so there were no surprises. Michelle was always super easy and we would always run in talk to her even it was for a few minutes. The best thing was the process was very, very smooth."

Chris and Jamie

Michelle, I want to thank you for all of your efforts on the loan. I never knew how much information the needed! I appreciate your personal nature and ease of working together. Thank you for making this happen! :)

Amy

Selling our home of 17 years and building a new home was a very emotional time for our family. We were ready for the next adventure in our lives but knew there were numerous steps involved. The search for a mortgage officer was simple, Michelle was our choice. Her guidance and knowledge made the process as easy as possible. When we had questions, she was always there to give us an answer and discuss our options. The employees of Mid America Mortgage Services, Inc like Michelle will keep us returning for our mortgage needs.

Chad and Julee

"When we were 18 and 19 years old no one wanted to help us get started. But Michelle took us under her wing 6 years ago next month. There is a lot of people out there that could of taken advantage of us many of times because we had no idea what was going on. For Michelle to stand beside us and walk us through, and not let us get into something that could get us in a lot of trouble means the world. We thank Michelle and we are extremely blessed to be able to work with her and her team. I have never even thought about talking to another lender and will always be loyal to Mid America Mortgage Services, Inc."

Cody and Morgan

"I’m a very loyal customer at Mid America Mortgage Services, Inc. I have an addiction to building houses and designing them, and they are always right there with me every step of the way helping me get the best loan product and the best rates whenever I am ready to build. They make sure you don’t get a loan that you can’t afford. The whole process was very smooth. I would recommend Mid America Mortgage Services, Inc to anyone because they are always there to teach you, help you, and make it easy for you every step of the way."

Kate

"My wife and I have moved around quite a bit with my job so we have been through the process before, but we have never had anybody help us as much as Michelle West Mid America Mortgage Services, Inc did. We needed a loan for a new construction home and they were able to help us out with all of our needs and make us feel comfortable with what we were doing moving forward. They did a good job of walking us through the paperwork to make sure that we were pre-approved for a certain amount."

Jason

"My family owns Tiger Ice Company. My experience with Ralph at Mid America started with Tiger Ice because we needed to expand our facility. When we went in to talk to Ralph at Mid America, he pretty much was straight up with us and told us we needed to go back to the drawing board. We came back with new numbers and a new plan, and we built the facility and everything was fine. Our dream of that would not have been possible at all without Mid America Mortgage Services, Inc and Ralph. They don’t tell you what you want to hear, they tell you the truth and that's what we weren't getting from other banks."

Andy


Phone: (573) 875-1100
200 E Walnut St, Columbia, MO 65203