Choosing which type of mortgage loan you need can be complicated when so many types are available. Considerations like the amount of money you have for a down payment and your veteran status can all affect the type of loan that's right for you. The mortgage loan experts at Premium Mortgage Corporation in Barre, Vermont, and Buffalo, Rochester, and Syracuse, New York, explain six types of home loans you may want to consider.
Types of home mortgage loans include:
- Fixed-Rate Loan: A fixed-rate loan is a variable length loan, usually lasting for 15 or 30 years, that has a fixed interest rate and monthly payments. This is the most common type of loan and works best for people who plan to stay in their house long-term.
- Adjustable-Rate Mortgage (ARM): A fixed-rate loan is a variable length loan, usually lasting for 15 or 30 years, that has a fixed interest rate and monthly payments. This is the most common type of loan and works best for people who plan to stay in their house long-term. These types of loans are ideal for people who want to sell their home while the mortgage rates are still low.
- Federal Housing Administration (FHA) Loan: FHA loans let you put a smaller down payment—as little as 3.5%—on your house. The downside is that buyers must pay mortgage insurance on their loan.
- Veterans Affairs (VA) Loan:
- Veterans who meet certain criteria can qualify for a VA loan with no money needed for a down payment and no mortgage insurance payments.
- USDA Loan:
- USDA Rural Development loans allow people who meet certain criteria in rural areas to purchase a home with no down payment and lower interest rates. People who receive USDA loans must pay mortgage insurance.
- Bridge Loan: If you're buying a house before you sell your current residence, you can wrap both mortgage payments together in a bridge loan. This option is suitable for homeowners with excellent credit to help them transition into their new house.
Let the mortgage loan consultants at Premium Mortgage Corporation explain the full details of each loan program and help you choose the right one for you. Give them a call at (844) 793-0177 to learn more about their services, or visit their website to view their mortgage calculator and other home financing information.
Corporate Contact Information:
2541 Monroe Avenue
Rochester, NY 14618
NMLS #3254 | Equal Housing Lender
Licensed Mortgage Banker NYSDFS