Fixed Rate Mortgages (FRM)
The most common type of loan option, the traditional fixed-rate mortgage includes monthly principal and interest payments which never change during the loan’s lifetime.
Adjustable Rate Mortgages (ARM)
Adjustable-rate mortgages include interest payments which shift during the loan’s term, depending on current market conditions. Typically, these loans carry a fixed-interest rate for a set period of time before adjusting.
USDA Home Loans
USDA Loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase a home.
FHA Streamline Loans
The Federal Housing Administration (FHA) provides mortgage insurance on loans made by approved FHA lenders.
VA loans are mortgages guaranteed by the Department of Veteran Affairs. These loans offer military veterans exceptional benefits, including low interest rates and no down payment requirement. This program was designed to help military veterans realize the American dream of home ownership.
Interest Only Mortgages
Interest only mortgages are home loans in which borrowers make monthly payments solely toward the interest accruing on the loan, rather than the principle, for a specified period of time.
Fixed Rate Mortgages
Fixed-rate mortgages are the most common type of mortgage selected by homeowners today. With a fixed-rate, you are locked in to a set interest rate.
By definition, a conventional loan is any mortgage that is not guaranteed or insured by the federal government. This is a mortgage that refers to a home loan that follows the guidelines of government sponsored enterprises (GSE’s) like Fannie Mae or Freddie Mac.
Down Payment Strategies
A down payment for a home can range between 3-20% of the asking price, but usually it falls between 5-10%. The larger the down payment, the cheaper the total mortgage will be for the homeowner. With some forethought, discipline and budgeting, you will achieve the American dream.
Reverse Mortgages allow senior homeowners to convert a portion of their home equity into cash while still living in the home.
What kind of loan program is best for you?
Should you get a fixed-rate or adjustable rate mortgage? A conventional loan or a government loan? Deciding which mortgage product is best for you will depend largely on your unique circumstances, and there is no one correct answer.