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.