05/30/2023
Did you know that there are different types of home loans? It is important to know your options so you can find the best mortgage loan that fits your lifestyle and requirements!
Here are the different types:
✅30-year fixed-rate mortgage - the most common and traditional loan that lasts for 30 years with a fixed interest rate and monthly payments.
✅Adjustable-rate mortgage - the interest rate on this mortgage is fixed for a certain duration then periodically adjusts per the margin and index associated with the note.
✅VA mortgage - this is a type of military loan that mortgage lenders issue to qualified veterans, active service members, and spouses. They're backed by the government body, the Department of Veteran Affairs (VA). Also, 0% down payment needed with VA loan.
✅15-year fixed-rate mortgage - similar to the 30-year, a 15-year is a home loan that requires monthly payments and has a fixed interest for a 15 year period.
✅FHA mortgage - a US Federal Housing
Administration mortgage that's insurance-backed and provided by an FHA-approved lender. This mortgage insurance protects lenders against losses and only requires a small downpayment of 3.5%.
✅USDA mortgage - this is from the USDA loan program, also known as USDA Rural Development Guaranteed Housing Loan Program. This program allows homebuyers to achieve 100% financing and 0% downpayment towards purchasing their home. It's a mortgage loan offered to rural property owners by the USDA.
