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Types of Loans

Busey Home Mortgage offers great rates and lower fees than many of our competitors, coupled with our superior customer service and mortgage expertise. Our in-house mortgage expertise and participation in a wide range of special loan programs mean your home loan is tailored to your individual needs. Below are some of the loan types available to you, but don't feel overwhelmed—your Busey Home Mortgage lender will help you decide which loan type is right for your unique situation.

Thirty-Year Fixed Rate Mortgage
The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.

Fifteen-Year Fixed Rate Mortgage
This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate—and you'll own your home twice as fast. The disadvantage with a 15-year loan is you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments to pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment, since the difference in interest rates isn't that great.

Adjustable Rate Mortgage (5/1 ARM, 7/1 ARM, 10/1 ARM)
These increasingly popular ARMs (Adjustable Rate Mortgages)—also called 5/1, 7/1 and 10/1—can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example, a "5/1 loan" has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. It's a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.

FHA Mortgage
FHA (Federal Housing Administration) Mortgages allow financing up to 96.5% of the purchase price and allow you to use gift and or grant funds for down payment and closing costs.

VA Mortgage
The VA, or Veterans Administration, helps eligible U.S. Veterans buy homes using 100% financing.

Rural Development/USDA Program
The Guaranteed Rural Housing Loan Program offers 100% financing to borrowers purchasing in a rural community.

Portfolio Loan Programs

Niche loan programs exclusively offered by Busey Home Mortgage.



Busey Home Mortgage NMLS #509055
12300 Olive Boulevard, St. Louis, MO  63141
Toll Free:  (888) 649-3320
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