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Mortgage loan options
Whether you’re a first time homebuyer or a seasoned real estate pro, it isn’t easy discerning the differences in the many mortgage loan types offered by lenders today. Here’s a breakdown of popular mortgage offerings available and the pros and cons of each.
A fixed-rate mortgage is considered to be one of the most popular offerings. With a fixed-rate mortgage your interest rate will stay the same over the life of the loan.
An adjustable-rate mortgage, or ARM, will begin with a fixed rate for a set period of time. After the introduction period, the loan will convert to an adjustable rate, and your monthly payment will rise or fall depending on the average interest rate.
Federal Housing Administration, or FHA, loans are insured by the government through mortgage insurance. FHA loans allow banks to approve risky borrowers.
A VA mortgage is guaranteed by the U.S Department of Veterans Affairs. These loans are designed to supply fixed-rate mortgages to eligible American veterans with little or no down payment.
From interest-only to construction mortgage loans, don’t forget there are many other loan options available to finance your home.