Home Loan Types

When you dream of having your first home, or when you think it is time to buy a new home as an investment, you begin to think ... "But!" How will I pay? "
Over time have been developed for housing loans of different kinds, in order to respond to the needs and diverse economic conditions. To get to know them and can choose the most convenient and the one that best fits your income and opportunities, we will examine the different types of home loans.
Loan Types:
- Mortgages with fixed interest rate.
- Mortgages with adjustable interest rate.
- FHA loans.
- VA Loans.
Mortgages Fixed Rate
Its ensures that the interest rate and monthly payments will not undergo any change during the life of the loan. It has, usually paid within the ten, fifteen, twenty, thirty or even forty years.
The short term loans have higher monthly payments, but you pay a lower interest rate in general and accumulate capital more quickly.
If you want to live in your home for many years and current interest rates are low long-term, it is possible that this mortgage suits your needs.
It is important to remember that the mortgage also gives you the maximum interest deduction tax purposes
Interest-rate mortgages Adjustable
With a mortgage of this type, it is possible that the interest rate you pay is periodically adjusted according to market movements.
Therefore, when interest rates fall, your monthly mortgage payments can also be reduced.
The mortgages with adjustable interest rates offer a lower rate than fixed rate mortgages, which can help you qualify for a loan for a higher balance.
Some mortgages allow, at certain times to convert an adjustable loan with a fixed interest rate.
Government Loans
There are also two federal agencies that offer government-guaranteed loans:
The Federal Housing Administration (FHA) and Department of Veterans Affairs (VA)
These loans require that the property being purchased meets certain basic requirements.
FHA Loans
With FHA insurance, you can buy a home with a low down payment and even finance the closing costs.
The FHA mortgage loans have a ceiling that varies according to the average cost of housing in the area of ​​your choice.
Loans Veterans Administration (VA)
If you are a qualified veteran, the VA loan will be very beneficial as it will allow you to buy your home with no down payment, when you get a loan with a fixed ceiling. This program may be the one that best suits your needs.