Types Of Loans Offered By Mortgage Companies
Mortgage companies offer potential home buyers multiple options for loans. Each loan type offers different terms and interest rate amounts. When searching for a loan, consumers must research the options available and match the right loan type to their own specific needs.
Consumers who want their payments to remain the same through the life of the loan can choose fixed rate mortgages. Borrowers pay off these loans, including interest, in equal amounts on a monthly basis. Front-loaded interest payments mean that only a small portion of each payment goes against the principal amount at first. Borrowers pay the same interest rate until they repay the debt in full.
Adjustable rate loans usually offer lower interest rates at the beginning but they fluctuate after that. The rate continually adjusts with a cap on the total amount it can change. Rates fluctuate according to an index based on what it costs the lender to borrow on credit markets. If a lender's interest rate increases, the lender passes the increase on to the consumer.
Loans offered by the Federal Housing Administration are specifically for buyers who cannot qualify for other types of loans. They offer a low down payment and low closing costs. At the same time, the criteria for qualifying are easier to meet. This is a great option for first time home buyers but loan amounts are typically limited.
Veterans, active duty personnel, and surviving spouses enjoy guaranteed acceptance when they apply for a VA loan. Similar to the FHA loan, the size of the loan is limited because of the more lenient requirements. These mortgages offer borrowers low down payments and low interest rates.
Mortgage companies also offer other options, including reverse mortgages, interest only loans, and balloon mortgages. Financial experts working for these companies can explain the requirements and terms associated with each type. Potential borrowers should carefully weigh the options and select the type that meets their own individual needs.
Consumers who want their payments to remain the same through the life of the loan can choose fixed rate mortgages. Borrowers pay off these loans, including interest, in equal amounts on a monthly basis. Front-loaded interest payments mean that only a small portion of each payment goes against the principal amount at first. Borrowers pay the same interest rate until they repay the debt in full.
Adjustable rate loans usually offer lower interest rates at the beginning but they fluctuate after that. The rate continually adjusts with a cap on the total amount it can change. Rates fluctuate according to an index based on what it costs the lender to borrow on credit markets. If a lender's interest rate increases, the lender passes the increase on to the consumer.
Loans offered by the Federal Housing Administration are specifically for buyers who cannot qualify for other types of loans. They offer a low down payment and low closing costs. At the same time, the criteria for qualifying are easier to meet. This is a great option for first time home buyers but loan amounts are typically limited.
Veterans, active duty personnel, and surviving spouses enjoy guaranteed acceptance when they apply for a VA loan. Similar to the FHA loan, the size of the loan is limited because of the more lenient requirements. These mortgages offer borrowers low down payments and low interest rates.
Mortgage companies also offer other options, including reverse mortgages, interest only loans, and balloon mortgages. Financial experts working for these companies can explain the requirements and terms associated with each type. Potential borrowers should carefully weigh the options and select the type that meets their own individual needs.
About the Author:
Want to find out more about Mortgage Companies? then visit Swan Financial for your mortgage and financial needs.
You are receiving this because you signed up for it on 2013-04-11 from IP 141.0.9.129
To fine-tune your selection of which articles to receive, just login here
using your username:
To unsubscribe please use the following link:
Unsubscribe
---------------------------------
New Unique Article!
Title: Types Of Loans Offered By Mortgage Companies
Author: Eddie Sexton
Email: kmarcum@seomarketinglouisville.com
Keywords: Best Fixed Mortgage Rates, Best Refinance Rates, Home Loans, Home Mortgage, Home Mortgage Rates, Mortgage Companies, Mortgage Lender, Mortgage, Home Loan
Word Count: 322
Category: Finance
---------------------------------
Tidak ada komentar:
Posting Komentar