Here are the types of loans available:
: The interest rate stays the same for the entire term of the loan. The advantage is that, if you lock in a relatively low rate, your payment won’t go up when interest rates do.
: The rate of this loan can change throughout the term of the loan. This rate is based on adding points to a fixed base.
: Combines a fixed period with an adjustable component. Usually fixed for a period of time and then becomes adjustable, depending on current interest rates.
: A loan that is insured by the U.S. Federal Housing Administration.
: A loan that is guaranteed by the U.S. Veterans Administration. This loan is designed to offer long-term financing to American Veterans or their surviving spouses.
Loan Pre-qualification vs. Pre-approval
Getting pre-qualified for a loan helps you determine your home-buying budget. Your mortgage agent will look over your credit history, income, outstanding debt, monthly expenses, employment history, and more to help you understand what you can afford.