6 Types of Home Loans

If you’re thinking of purchasing a home in the new year, here’s 90-seconds of home loan knowledge. Definitely worth a watch.

1. Fixed Rate Loan

The most common type of conventional loan, it offers a fixed rate for the life of the loan. Terms are usually 15 – 30 years.

2. Adjustable Rate Mortgage

Rates are typically lower than you’d get with a fixed-rate mortgage, but your rate may adjust. If interest rates shoot up, so do your monthly payments. If rate drop, you’ll pay less per month.

3. FHA Loan

With a Federal Housing Administration, or FHA loan, you can put down as little as 3.5%.

4. VA Loan

If you’ve served in the U.S. military, a Veterans Affairs or VA loan is an excellent alternative. If you qualify, you’ll enjoy a home with no down payment and no mortgage insurance requirements.

5. USDA Loan

This home loan is designed for families in rural areas. No down payment necessary – and it offers discounted mortgage interest rates to boot.

6. Bridge Loan

An excellent option if you’re purchasing a home before selling your previous residence.

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