The most common type of loan option, the
traditional fixed-rate mortgage includes monthly
principal and interest payments which never
change during the loanʼs lifetime
Adjustable-rate mortgages include interest
payments which shift during the loanʼs term,
depending on current market conditions. Typically,
these loans carry a fixed-interest rate for a set
period of time before adjusting.
FHA home loans are mortgages which are insured
by the Federal Housing Administration (FHA),
allowing borrowers to get low mortgage rates with
a minimal down payment.
VA loans are mortgages guaranteed by the
Department of Veteran Affairs. These loans offer
military veterans exceptional benefits, including
low interest rates and no down payment
requirement. This program was designed to help
military veterans realize the American dream of
home ownership.
Interest only mortgages are home loans in which
borrowers make monthly payments solely toward
the interest accruing on the loan, rather than the
principle, for a specified period of time.
Graduated Payment Mortgages are loans in which
mortgage payments increase annually for a
predetermined period of time (e.g. five or ten
years) and becomes fixed for the remaining
duration of the loan.
Should you get a fixed-rate or adjustable rate
mortgage? A conventional loan or a government
loan? Deciding which mortgage product is best for
you will depend largely on your unique
circumstances, and there is no one correct answer.
