| If you are in the market for a new home, or perhaps | | | | home buyers. FHA loans are great if you are buying |
| looking to refinance, you will need to know a thing or | | | | your first home. FHA loans are backed by the |
| two about what to look for in a mortgage. You have a | | | | government, so lenders are more likely to give you the |
| lot of options when you select a mortgage, and there | | | | funding you need. If you are a veteran, you can also |
| are many mortgage lenders to choose from. | | | | apply for a VA loan. It is a great deal for veterans, |
| Deciding what type of loan you would like is the first | | | | because a VA loan does not require the borrower to |
| step for you. There are many types of loans to | | | | have a down payment like other loans do. There are |
| choose from, and it is a critical step. Selecting the | | | | other types of loans on the market too, so do your |
| wrong mortgage might put you in an awkward | | | | research to determine what is best for you. |
| financial situation down the road, so it is best to find out | | | | If you find the loan you want, but the interest rate is |
| what you need from the beginning. | | | | not quite as good as you want it to be, you can |
| The oldest type of mortgage on the market is the | | | | change it. Lenders will allow you to pay what they call |
| fixed rate mortgage. Fixed rate mortgages are for a | | | | points. You can pay some extra money on the front |
| particular period of time, say 10 years, or 30 years. | | | | end to actually reduce the amount of the interest rate. |
| The length of the loan varies, and you have many to | | | | Points are a percentage of the loan amount, so the |
| choose from. With a fixed rate mortgage, the interest | | | | larger the loan, the more it will cost to buy down the |
| rate will not change for the entire length of the loan. | | | | interest rate. |
| That can be great if you get the loan when rates are | | | | Mortgage lenders come in a variety of forms these |
| very low, but if rates drop after you take out the loan, | | | | days. You can get a loan at your local bank or credit |
| you might want to refinance to get a better interest | | | | union, if you choose to go a traditional route. You can |
| rate. | | | | also apply for a mortgage online. Online mortgage |
| Another type of mortgage is the adjustable rate | | | | brokers often have the best rates because they are |
| mortgage, also called an ARM. Adjustable rate | | | | selling loans at a high volume. Most only mortgage |
| mortgages do just what the name implies, they | | | | brokers sell for several different lenders, so you will |
| fluctuate with the market. With an ARM, the rate will | | | | have many loans to compare. |
| change from time to time as the interest rates change. | | | | Mortgage lenders are easier to find than ever before. |
| It could go up, or it could go down, depending on what | | | | With technology today, you can apply for a loan in the |
| the prime interest rate happens to be. | | | | comfort of your home. |
| Other types of mortgages are designed for specific | | | | |