Mortgage loan programs: there are a few options. It will help you to understand these home loan programs. Before securing a mortgage loan, you should consider the types and understand how they work.
- Fixed-Rate Mortgage Types
This is the granddaddy of them all. Now you can choose from 10-year, 15-year, 20-year, 30-year, 40-year and even 50-year fixed-rate house home mortgages, all of which are completely amortized.
- FHA Loans
FHA house mortgages are covered by the government through home mortgage insurance that is borrowed against the property mortgage. First-time property customers are perfect candidates for an FHA house mortgage because the down payment requirements are low and the FICO scores do not matter.
- VA Loans
This type of government house mortgage is available to individuals who have served in the U.S. Armed Services and, in certain situations, relatives. The requirements change with regards to the length of service and type of discharge. The main benefit to a VA mortgage is the buyer does not need a down payment. Your property mortgage is guaranteed by the Government but borrowed by a traditional financial institution.
Interest-Only Mortgage Types
Calling a home mortgage an “interest-only mortgage” is a bit incorrect because these loans are not really interest only. Interest-only loans contain an option to make an interest-only payment or interest and principal. The option is available only for a limited period of time.
Now you are provided with the ideas on what types of mortgages are available. Now you can choose which may work best for you.
All information is from sources deemed reliable but is subject to errors, omissions, changes in price, prior sale or withdrawal without notice. No representation is made as to the accuracy of any description.
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