If you want to home, the alternatives are many. You can choose between 8 different types of mortgage loans that span through appeals to beginners, veterans, people looking for an investment, and more.
Why the 30-Year Fixed Mortgage?
You can use an 30 year fixed rate mortgage to avoid excess payments for the entire lifespan of the loan. It works best for home buyers wanting the lower monthly payment coming from stretching out repayment over a long time. It also makes the monthly payments predictable and gives the flexibility to repay the loan faster by adding to monthly payments. The Mortgage Note is similar to Open Lou, but it offers another option with accelerated repayment of your mortgage balance.
Learn about the Benefits of a 15-year fixed mortgage
This type of mortgage comes with a fixed interest rate for its 15 year term. Interest rates won’t fluctuate during this period, making it particularly suitable for those who know their income will remain static for the duration.
This type of mortgage can work for refinancers who need to pay off their loans quickly, or potential home buyers looking for more predictable monthly payments. Payments are lower than the standard mortgages, the borrower pays interest for fewer years, and their monthly payments are fixed.
How do Adjustable Mortgages work?
The fixed-rate mortgage loan is a great solution for home buyer who wants to know their monthly payments will be predictable. Fixed-rate mortgages have a fixed rate for a specified amount of time before finally adjusting annually thereafter.
FHA is designed to fulfil
The FHA mortgage is insured by the Federal Housing Administration and designed to help borrowers of modest means buy a home. It works best for borrowers with lower credit scores and a down-payment of less than 20%.
8 types from the VA
VA mortgages are backed by the Department of Veterans Affairs and are available to military service members and veterans, an option that is best for military-affiliated borrowers who prefer a low-interest rate and no-down-payment minimum.
Why and when to explore a USDA mortgage
Many different mortgage lending types are available, like the USDA mortgage for rural homeowners that offers low or no down payment options.
How to get a jumbo lendings
Jumbo loans are loans above a certain dollar amount, the limits of which vary by county and are adjusted periodically. They work for buyers of expensive homes and owners wanting to refinance.
What you need to know about interest-only
One option for high monthly cash flow borrowers with variable incomes or incomes that are increasing over time is an interest-only mortgage. This type of mortgage requires monthly payments on just the interest charge, without any reduction in the original loan balance.
