Part of the buying process involves getting a mortgage loan. Just as you look for a home that best fit your real estate needs, it’s equally important to look for a mortgage that best fit your situation. In choosing the best type of loan consider the interest rate, where you live, how long do you plan to live in your next home, and other variables.
Below are the most common types of loan available for you. See which one may best fit your situation.
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If You… |
The right Type of Mortgage for you is… |
It’s best because… |
| Want to stay for a good number of years on your home and are not going anywhere soon… |
A Fixed-Rate Loan |
There are no surprises, the rise and fall of interest rates wont affect your payment because the interest rates stays the same the entire loan term. |
| Want to have a lower interest rate even if you have a lower credit score…
— Want to move and sell your home before your fixed-rate period is up… |
An Adjustable Rate Mortgage |
An adjustable Mortgage can push the interest down to make home ownership more attainable.
— You can enjoy a lower monthly payments at the beginning of your loan. |
| Buy your home with a small down payment…
|
An FHA |
It only require as little as 3.5% for a down payment and you’ll have a consistent monthly payment for the life of your loan. |
| Are an active military personnel, veteran, surviving spouse, member of national guard, or reserve… |
A VA Loan |
There’s no down payment required. You enjoy negotiable interest rate and there’s no Private Mortgage Insurance premiums, |
| Want to buy a home in the rural area with no down payment…
|
A USDA Loan |
There’s no down payment necessary and it offers discounted interest rates. |
| Want to borrow more than $417,000.. |
A Jumbo Loan |
This type of loan exceeds the conforming loan limits set by regulation. You can choose either a fixed rate or an adjustable rate. |
Free Mortgage Guide
If you are buying a home or anyone you know who is thinking of buying a home, use this Home Loan Toolkit to help you understand and help you get the best mortgage specific for your situation. This guide will also help you understand the mortgage process and overview of the total costs of homeownership.
