Common Home Loan Programs_7319

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There are many home loan programs available to fit the needs of everyone.  Below I will give a brief overview of the more popular loan programs.   
    Fixed Rate  ?Interest never changes.  ?Fixed rate mortgages fully amortize over a defined period of time and are paid in full at the end of the loan term.  ?Many terms available.  The most common terms are 15 year and 30 year mortgages.  Even 40 and 50 year are now available  ?The shorter the term, the faster the equity builds up.   
    Adjustable Rate Mortgage (ARMs)  ?Fixed for a certain amount of time (usually 3 or 5 years) but can (and usually does) adjust after that  ?Offer borrowers initial interest rates that are lower than fixed-rate mortgages.  ?The lower rate may help borrowers qualify more easily.  Interest Only  ?For a set term,You are not allowed to view links. Register or Login, the borrower only pays the interest on the principle balance, with the principle balance unchanged.  ?At the end of the interest only term the borrower may enter an interest only mortgage,You are not allowed to view links. Register or Login, pay the principal,You are not allowed to view links. Register or Login, or (with some lenders) convert the loan to a principal and interest payment loan at his/her option.  ?5 or 10 year interest only period is typical   
    Fixed Rate Balloons  ?Monthly payments based on a 30-year amortization  ?But the unpaid balance (balloon) is due at the end of a shorter,You are not allowed to view links. Register or Login, predetermined term, typically 5,You are not allowed to view links. Register or Login, 7 or 10 years.   
    FHA Mortgage  ?Not as strict on credit scoring  ?Allow for smaller down payments  ?Higher debt to income ratios  ?Maximum loan amounts are lower than conventional loans and they are determined by area.   
Common Home Loan Programs
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