Issue link: http://www.epageflip.net/i/1291085
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. Co nve nt i o n a l/F i xe d - Rate M o r tg a g e : A ¬xed-rate mortgage features an interest rate that remains constant throughout the term of the loan. Most ¬xed-rate mortgages come with a term of either 15 or 30 years. Ad j u s t a b l e - Rate M o r tg a g e (A R M) : Adjustable-rate mortgages typically start with a lower rate than ¬xed-rate mortgages, but aer a few years the rate can begin to rise and will ¯uctuate periodically. VA (Vete r a n s A a i r s) L o a n s : VA loans o°er up to 100% ¬nancing for military members and their families. F H A (Fe d e r a l H o u s i n g Ad m i n i s t r at i o n) L o a n s : FHA loans can help buyers receive ¬nancing 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. US DA (U n ite d St ate s D e p a r t m e nt o Ag r i c u ltu r e) R u r a l D eve l o p m e nt L o a n s : These loans are available to rural residents who meet certain requirements, including the inability to be approved for traditional ¬nancing. B a ll o o n L o a 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. I nte r e s t- O n l y L o a n s : These loans o°er 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 o° the principal as well. Selecting the mortgage option that works best or you will depend on a number o actors, including how long you plan to stay in the home, i you're comortable not knowing what your uture payments might be and more. Work with your loan o–cer or mortgage broker to discuss your goals and liestyle in relation to these di erent inancing options. By careully analyzing the pros and cons o each loan type, you can determine a inancing option that best meets your needs.