Did you know there are 6 different types of home loans? It’s important to know your options when buying a home. You and your Lender should work together to find a mortgage loan which fits your lifestyle and personal requirements the best.
Here are the 6 different types of home loans:
30-year fixed-rate mortgage – This is the most common and traditional home loan. It lasts for 30 years with a fixed interest rate and monthly payments.
Adjustable-rate mortgage – the interest rate on this mortgage periodically adjusts based on an index reflecting the cost to the lender of borrowing on the credit markets. This is a riskier type of loan, so pay attention to the terms.
VA mortgage – this is a type of military loan that mortgage lenders issue to qualified veterans, active service members, and their spouses. They’re backed by the government in the Department of Veterans Affairs (VA).
15-year-fixed-rate mortgage – similar to the 30-year fixed-rate, a 15-year is a home loan that requires monthly payments and has a fixed interest rate.
FHA mortgage – a US Federal Housing Administration mortgage that’s insurance-backed and provided by an FHA-approved lender. This mortgage acts like insurance, as it protects lenders against losses.
USDA mortgage – this is from the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program. It’s a government-backed mortgage loan offered to rural property owners by the USDA. Your household income must meet certain guidelines, and not every location will qualify. Be sure to ask your Lender which areas qualify for this loan.
Have any questions? Leave them below in the comments!
If you would like a referral to a good Lender, this whom I presently recommend: Jason Andrzejewski at Prosperity Home Mortgage.
Be sure to check out my other Real Estate Blogs HERE: https://northernvaneighbors.com/Topics/blog/real-estate/