Understanding Home Loan Types and Options

There are only a few types of loans with a handful of different options. Once you understand these choices, the world of home loans will be a lot less complicated

 

Fixed Rate vs. Adjustable Rate Loans

Some loans have a fixed interest rate for the life of the loan, and others have an interest rate that may start to change after an initial period. One major choice you have is whether to lock in your rate for the full duration of the loan (a fixed rate) or to allow the rate to change during the loan (an adjustable rate).

 

FHA Loans

If you don’t have a 20% down payment for a loan, an FHA loan may be for you.

 

VA Loans

Are you a U.S. Military Veteran or on Active Duty? The VA loan may be the best option for you.

 

USDA Loans

USDA loan programs are a good choice for rural or suburban buyers that don’t have a downpayment.

 

Jumbo Loans

Buying a large home? You may fit in the Jumbo Loan category.

 

Loans with PMI

Private Mortgage Insurance will be required in most cases when you don’t have a 20% downpayment.

 

 

DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or it's applicability to your financial situation. Please consult your own financial, tax and legal advisors.