| The Conventional Home
Loan |
 Thirty year fixed
rate loan - Loan monies are
calculated over a thirty year payback
making 360 equal payments. The payment
includes the principal of the loan and
the interest.
Fifteen and Twenty year fixed rate
loans - Both the fifteen and the
twenty year loans are the same as the
thirty year fixed rate loan. However,
the interest rate will be a little less
than the thirty year interest rate, and
the borrower will pay off the loan
faster.
Adjustable rate loan - Commonly
referred to as an ARM. This loan adjusts
its interest rate according to the terms
of the loan, which could be every year.
There are many variations to this type
of loan. Your Mortgage Broker should
advise you when this loan would be
appropriate for your situation.
Jumbo loans - A jumbo mortgage is
a loan higher than the limits set by the
Federal National Mortgage Association
and the Federal Home Loan Mortgage
Corporation. The interest rate is
generally higher than the previous loans
discussed.
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| An FHA Mortgage |
An FHA mortgage is
insured by the Federal Housing
Administration. The FHA sets specific
guidelines on this type of loan. FHA
loans are usually more lenient with
borrowers. The qualifications are
usually a low down payment and a larger
debt to income ratio.
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| VA Loans |
A VA mortgage is
guaranteed by the Department of Veterans
Affairs. The advantage of this loan is
that the borrower can finance the
property with no money down. You must
have qualified Military service to be
able to apply for this loan.
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