Know the Specifics of Borrowing: Types of Mortgage Loans

Mortgage LoanThere are moments in your life wherein financial weaknesses become apparent. It is an unfortunate thing to happen; medical bills, debt payments to make, special occasions requiring celebration, an opportunity to travel or invest. These things happen and it’s either you allow them to pass or you succumb to emptying your pockets. So, in effect, how will you ever be able to buy a home then?

There are mortgage loans you can apply for and, depending on your requirement, sometimes all you need is the magic word and filling out the application form.

Types of Loans, a mortgage broker operating in Utah, provides people in need with a partial list of loan programs to make the process easier to digest.

  • USDA Loans – This is a mortgage loan, insured by the US Department of Agriculture, available to qualified individuals purchasing or refinancing their home loan in a USDA-specified area.
  • Conventional Fixed Rate Mortgages – These loans require a minimum of a 5% down payment and are available in 10, 15, 30 and 40-year terms.
  • Adjustable Rate Mortgages – These mortgages, recalculated on an annual basis relevant to market values, have interests adjusting according to the borrower’s monthly payment. While the ARM loans’ interest rates are lower than fixed rate loans, there is a chance for it to rise in due time.
  • Refinance Mortgage Loans – This type of home loan involves using another mortgage loan to pay off the initial mortgage and the homeowner follows the new mortgage’s terms and interest rates. Saratoga Springs, for example, provides refinancing home loans and lowering interest rates.
  • FHA Mortgage Loans – These are federal government-insured private loans requiring a mere 3% down payment. This type of loan requires the homeowner to pay mortgage insurance, consequently increasing their monthly dues. The Department of Housing and Urban Development approves lenders seeking to offer the FHA mortgage loan.
  • VA Mortgage Loans – These are federal government-insured private loans only available to qualified military vets and their families.
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There are a slew of other loan programs you can choose to avail in your pursuit of a place you can call your home.