Home Mortgages by:Sara Chambers
Home buying is one of the most important decisions an individual or a couple can make
. It is quite possibly the largest purchase an individual or family will ever make, thus, it is important to approach the funding of the purchase with great caution. Determining the type of mortgage that is right for you can be tricky. It starts with the basic knowledge of the different types of loans out there, including FHA Loans, VA Loans, Rural Housing Loans, and many other types of loans.Two very important and frequently used types of loans are FHA Loans and VA Loans. FHA loans are considered a government mortgage and are insured by the Federal Housing Administration. These loans mandate that the buyer put at least three percent of the sales price down as a down payment. VA loans are reserved to those individuals who have met specific time requirements in the military. There is typically on down payment and loans may equate 100 percent of the value of the property.
Rural Housing Loans are also an option for families and persons living in small towns and rural areas and have low to moderate incomes. There is one hundred percent financing with a thirty year term. In addition to the Rural Housing Loans, there are also Affordable Housing Program Loans and Housing Finance Agency Programs for home buyers to choose from.
The final major type of loan available to home buyers is the conventional loan. This loan is not insured by the government, but rather insurance companies. The loan allows up to ninety percent of the purchase price to be financed. Conventional loans can be either fixed-rate loans or adjustable rate mortgage. In a fixed rate mortgage, the interest rate of the loan is maintained over the length of payment, hence the title. Adjustable rate mortgages may start off with a lower rate, but as interest rates rise, so to will your monthly payments rise. The ARM mortgage is often used in situations where income is low at first but is expected to go up.
About the author
Sara Chambers is a marketing consultant and an internet content manager for http://www.homemortgageweblog.com. If I Have More Than One Employer Can I Have More Than One 401K Limit Of $14 000? by:Paul Smith Real Estate Training Guide- How to become a successful real estate agent by:Gagandeep Dhaliwal Fit For Work - Managing Attendance In The Workplace by:Carole Spiers Do It Yourself Credit Repair IS a Good Option by:Rob Boirun Things Do Not Change. We Do. by:Carole Spiers Absent without leave - managing absence in the workplace by:Carole Spiers Your Auction Business & Taxes by:Vera Raposo What Makes A Successful Negotiator? Five Steps To Negotiating Like An Expert by:Colleen Francis Types Of Work At Home Jobs by:Stephen Kreutzer The Four Classifications Of A Public Retirement System by:Henry Clark Difference is 'Value Added' by:Carole Spiers On Formulaic Investing by:Geoff Gannon Quick Resume Writing Tips: Evaluating Your Resume by:Laura Adams