There are many different types of mortgages out there, and it can be difficult to make a decision about which one is the best for you. There are several factors that go into deciding which mortgage is right for you, including your income, credit score, debt level and more. In this article we’ll discuss some of the most popular mortgage types so that you can better understand what’s available when shopping around for your next home loan!
FHA and VA Loans
FHA loans are designed for low-income borrowers and VA loans are for veterans. Both have lower down payment requirements and interest rates than conventional mortgages, but they also require you to pay mortgage insurance premiums to protect the lender in case of default on your loan.
FHA loans have higher fees than conventional mortgages, so if it’s possible, Charles Kirkland recommend going with a conventional loan instead of an FHA one if you can put 20% down or more.
Adjustable Rate Mortgages (ARMs)
Adjustable Rate Mortgages (ARMs) are loans that have a fixed interest rate for a set period of time. The initial rate can be as short as one year or as long as 10 years, but once the initial period is up, your mortgage payments will adjust to reflect whatever interest rate is current at that time. ARMs are ideal for people who plan to sell their home before their adjustable rate period ends because it means they’ll never pay more than their original principal amount–and sometimes less!
Fixed Rate Mortgages
Fixed rate mortgages are a good choice for people who are sure they want to stay in their home for a long time, as they offer stability and predictability. Fixed rate mortgages can be more expensive than other types of mortgages, but this extra cost is worth it if you’re looking for stability.
Charles Kirkland If you’re not sure how long you’ll stay in your home or if there’s even any chance that someday down the line you might sell it or move away, then getting a fixed rate mortgage might not make sense–you don’t want to lock yourself into paying higher monthly payments than necessary!
