Getting the right type of 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 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
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
dependant 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.
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