Mortgage Loan Types

Buying a home is possibly one of the biggest life decisions you’ll make. With big decisions come big responsibilities. A mortgage is essentially a promise you make to your mortgage lender that you’ll repay the money you borrow. Mortgages come in all shapes and sizes, lasting from months to decades. In order to select the right mortgage for your lifestyle and financial situation, you should create a personal monthly budget, determine how long you plan to live in the current home, and familiarize yourself with mortgage terminology and types.

When you pay off a mortgage, you have two payments: principal and interest. Principal is the actual amount of money you’ve borrowed to buy your home. In order to make money off of your mortgage, lenders also charge interest. Interest is the amount you pay the lender to borrow the money. The three popular types of mortgage loan are fixed rate mortgages, adjustable rate mortgages, and interest only mortgages.

Mortgage Loan Types Frequently Asked Question:

What is a Fixed Mortgage Rate?

What is an Adjustable Rate Mortgage?

What is an Interest Only Mortgage?

What is a Jumbo Loan?

What is an FHA Loan?

Let us help you find a qualified home mortgage lender!

There are many types of mortgages available, and various steps to take in your search. It is important that you find a qualified mortgage lender to find the right loan for you. Research the different loan types, compare mortgage rates, company histories, and look at the lenders customer reviews. Once you find the lender you believe to be the most qualified do not hesitate to ask questions about which mortgage option is best for you.