San Mateo Credit Union

Co nve nt io 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. Adj u s t a b le - 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 ra n s A a ir s) L o a n s: VA loans o°er up to 100% ¬nancing for military members and their families. FH A (Fe d e ra l H o u s in g Ad m in is t rat io 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 ricultu re) Ru ra l D eve lo 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 llo 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. Inte re s t- O n ly 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. 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. 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.

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