With an adjustable rate mortgage, the rate of the loan can change throughout the term of the loan. The rate of the loan is based on adding points to a fixed base.
An FHA loan is a loan in the United States that is insured by the Federal Housing Administration. FHA insured loans are a type of federal assistance and allow lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford.
To obtain mortgage insurance from the Federal Housing Administration, a mortgage insurance premium equal to 1% of the loan amount is required at the time of closing, and is normally financed by the lender and paid to the FHA on the borrower’s behalf. Depending on the loan-to-value ration, there may be a monthly premium as well.
Fixed Rate Mortgage
Fixed rate mortgages are mortgages where the interest rate stays the same for the entire term of the loan. The advantage to a fixed rate mortgage is that if you lock a relatively low rate, your payment won’t go up when rates do.
A hybrid loan combines a fixed period along with an adjustable component. Usually these loans are fixed for a period of time and then the loan becomes adjustable where it is dependent on current rates.
A USDA loan (also called a Rural Development Loan) is a government insured home loan that allows you purchase a home with NO Money Down. USDA Loans offer 100% financing to qualified buyers, and allow for all closing costs to be either paid for by the seller or financed into the loan. USDA offers some the lowest rates of any loan, and you will always have a fixed interest rate. Find out more information here.
VA helps Servicemembers, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. VA Home Loans are provided by private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms. Find out more information here.