When you seeking for a mortgage loan then you should realised your financial position first. If you are sure that you are going for a mortgage loan then please check that how many types of mortgage loan is available in the market. Which one will be the best option for you?
Here I will discuss about “What are the types of mortgage loan you can get?”
1. Fixed Rate Mortgage loan
A fixed rate mortgage loan is types of loan where the interest rate will remain unchanged till the mortgage period. If you follow the others types of mortgage loan then it will be best as here you will be totally tension free as your monthly payment will remain same through out the mortgage life. And if you want you can take it for 30 years with 360 installments. Here your interest percentage will be a bit higher than 15 years with 180 installments. But if you are in fixed rate mortgage loan you will not be having any problem to manage you fund.
2. Adjustable Rate Mortgages loan
As per the title you can understand that ARM (adjustable rate mortgage) loan is flexible in nature as per the current market situation. When you are going for this loan, you should mentally prepare about the interest rate as any point time it can be high. But don’t worry, as there is chance to get refinance from any other lender if they are providing any better deal.
3. Reverse Mortgage loan
A reverse mortgage loan is kind of loan made to older people who wish to obtain equity from their homes. Basically these loans are for retired people who may need the money to improve pensions, medical purposes or for any Social Security.
The main advantages of these programs are to get a tax free monthly income till the house is sold.
4. FHA mortgage loans
Day by day FHA (Federal Housing Administration) mortgage loans is increasing. The reason behind it that they it’s very much reliable & secure from both side lender as well as the borrower.
If you are seeking for a FHA loan to borrow a home with the lowest down payment, or you like to refinance your current mortgage or your credit score is not good, FHA loan will be the best one. As it doesn’t require any credit score, it has low down payments & easy terms & condition.
5. VA mortgage loan
If you are borrowing a house or refinancing your mortgage then VA (Veterans Administration) mortgage loan might help you as it provides a low-cost insured mortgage loans. But to qualify for VA loan, you must be an individual military person or their spouse. The benefit is that you don’t require any mortgage insurance, good interest rates & low closing costs.