Getting the right type of a real estate home loan is an important part
of the home buying process. In this section of my web site I have put
together some basic information regarding the types of real estate home
loans that are common in the market today.
Fixed-rate mortgages
Fixed rate mortgages are mortgages where the interest rate stays the same for the entire term of the loan. The advantage to a fixed rate mortgage is that if you lock a relatively low rate, your payment won’t go up when rates do.
Adjustable-Rate Mortgages
With an adjustable rate mortgage, the rate of
the loan can change
throughout the term of the loan. The rate of the loan is based on
adding
points to a fixed base; therefore the interest rate that you are
charged can change in either direction as the financial market changes.
Hybrid loans
A hybrid
loan combines a fixed period along with an adjustable component. Usually
these loans are fixed for a period of time and then the loan becomes
adjustable where it is dependent on current rates.
FHA real estate home loans
An FHA loan is a loan in the United States that is insured by the Federal Housing Administration. More information can be provided by our affiliated real estate agent.
VA real estate home loans
A VA loan is a loan in the United States guaranteed by the Veterans
Administration. The loan may be issued by qualified lenders. The VA was
designed to offer long-term financing to American Veterans or to their
surviving spouses. More information can be provided by our affiliated real estate agent.
