Types of Mortgages: Choosing the Right One

When buying a home, choosing the right mortgage is important. Let’s explore the different types in simple terms to help you decide which one is best for you.

Fixed-Rate Mortgages: Steady Payments

With a fixed-rate mortgage, your interest rate stays the same for the entire loan.

Good for: people who like predictable monthly payments.

Keep in mind: Initial rates may be higher than other types.

Adjustable-Rate Mortgages (ARMs): Rates Can Change

ARMs have rates that can go up or down over time.

Good for: people who expect to move or refinance before rates go up.

Keep in mind: Payments can increase if rates rise.

FHA Loans: Help for Low Down Payments

FHA loans are for people with lower credit scores or savings.

Good for: people who don’t have a big down payment.

Keep in mind: You’ll pay extra insurance fees.

VA Loans: Benefits for Veterans

VA loans help veterans, active military, and their spouses.

Good for veterans and military families with no down payment.

Keep in mind there may be fees and specific rules.

USDA Loans: Support for Rural Buyers

USDA loans help buyers in rural areas.

Good for: people buying in rural areas with low incomes.

Keep in mind that this is only available in certain areas.