United Poles Federal Credit Union

Numerous options and programs exist with different terms, features and benefits to suit various buyers. Be a well-informed consumer by familiarizing yourself with these common mortgage types: WHEN IT COMES TO MORTGAGES, ONE SIZE DOES NOT FIT ALL. Conve ntiona l /Fi xed - Rate Mor tga ge: A fixed-rate mortgage features an interest rate that remains constant throughout the term of the loan. Most fixed-rate mortgages come with a term of 10, 15 or 30 years. Ad ju s t a ble - Rate Mor tga ge ( ARM): Adjustable-rate mortgages typically start with a lower rate than fixed-rate mortgages, but after a few years the rate can begin to rise and will fluctuate periodically. VA ( Vete ra n s Af fair s) Loa n s: VA loans offer up to 100% financing for military members and their families. FHA (Fede ra l Hou s ing Ad mini s t ration) Loa n s: FHA loans can help buyers receive financing even if they may not otherwise qualify for a mortgage. The FHA insures the lender for the mortgage amount – removing the risk associated with the borrower. USDA (United St ates De pa r t me nt of Agric ulture) Rura l Develop me nt Loa n s: These loans are available to rural residents who meet certain requirements, including the inability to be approved for traditional financing. Ba lloon Loa n s: A balloon loan is a mortgage in which a larger-than-normal outstanding balance must be paid at the end of the term. Inte res t- O nl y Loa n s: These loans offer borrowers a period of time when they pay interest only on their mortgage. (During the interest-only term, the borrower does not build any equity.) Once the interest-only term ends, the borrower starts to pay off the principal as well. Selecting the mortgage option that works best for you will depend on a number of factors, including how long you plan to stay in the home, if you're comfortable not knowing what your future payments might be and more. Work with your loan officer or mortgage broker to discuss your goals and lifestyle in relation to these different financing options. By carefully analyzing the pros and cons of each loan type, you can determine a financing option that best meets your needs.

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