As mortgage rates begin to increase slightly, now is the time to take advantage of lower rates and educate yourself on the different types of home mortgages. Buying a home helps you build equity and long-term wealth. And if you’re a first-time homebuyer, it’s even more important to get a residential mortgage.
Several residential mortgages include fixed-rate mortgages, adjustable-rate mortgages, physician loans, and VA loans. There are different qualifications for each of these types of loans.
Here’s a better look at the types of loans available in the mortgage industry.
Types of Home Mortgages Include Fixed-Rate Mortgages
Fixed-rate mortgages are one of the most popular types of home mortgages. You can borrow an amount of money at a fixed rate over a 15 or 30-year period. By capitalizing on a low rate, you will make the same monthly payment over the life of the loan.
A 15-year loan has a lower mortgage rate than a 30-year mortgage. A smart owner will analyze the rates in the mortgage industry and figure out what is best. These loans are best for the first-time homebuyer.
Adjustable-Rate Mortgages
At the start of an adjustable-rate mortgage, you’ll pay a set interest rate, but then it will adjust over a period of time.
You might want an adjustable-rate mortgage for your primary mortgage residential loan if you think rates will fall over time. These loans are also popular with people who aren’t borrowing a lot of money.
Physician Loans
Are you a medical doctor? Doctors coming out of medical school typically carry a lot of student loan debt. A physician loan in the mortgage looks at your student loan debt.
You also won’t pay private mortgage insurance, even when you put less than 20-percent down. This helpful guide explains physician loans and can help you become a smart homeowner.
VA Loans
Backed by the federal government, VA loans require no money down and no mortgage insurance. Veterans have to go through an application process, which requires a fee, but this is an excellent choice for your primary mortgage residential loan.
You can also take advantage of low-interest rates.
USDA Loans
If you live in a rural part of the country, you could qualify for a USDA loan, backed by the U.S. Department of Agriculture. These loans are great for people who want to live in parts of the country surrounded by fields, forests, and no neighbors!
In addition, you won’t have to make a down payment.
Types of Home Mortgages
Start becoming a homeowner by learning about the different types of home mortgages. Qualified buyers can take advantage of fixed-rate mortgages, adjustable-rate mortgages, physician loans, VA loans, and USDA loans.
Get a mortgage loan before the rates start to increase! Save money by not paying rent and building your family’s fortune.
Do you want to learn about the different types of home mortgages and the application process? Please read more information on our website and take one step closer to becoming a homeowner!
