By Kyle Graves
Mortgages for residential properties come in a bunch of loan types, not just fixed-rate mortgages.
For those considering buying a new home, understanding the different loan types is key. Here is what you need to know!
These loan types include:
Fixed-rate mortgages are the most popular type of loan and offer an interest rate that remains the same throughout the life of the loan.
Adjustable rate mortgages or ARMs generally have lower initial rates than fixed-rate mortgages, but may become higher over time if interest rates increase.
FHA loans are government-insured mortgages designed to help borrowers with lower credit scores qualify for financing.
VA loans are similar to FHA loans in that they’re guaranteed by the government and offer Armed Forces Veterans more flexible terms than traditional loans.
USDA loans are intended to help moderate-income buyers purchase homes in rural areas.
Jumbo loans allow those with larger incomes to purchase higher price point homes without having to put down a large down payment.
Understanding that there are different mortgage options is essential for anyone looking to buy a home! The best person to dive into what loan type works best for your situation is a trusted loan officer from a reputable mortgage lender. A quality realtor will already have relationships with Loan Officers that they can add to your team for a smooth and beneficial transaction.
Whether buying, purchasing, selling, leasing, commercial real estate, or anything else you need answered, contact one of Rhode Island’s top realtors and we will be glad to help!
Contact James Duffer | Yvonne Sousa | Herson Martinez | Kyle Graves | Ryan Foss| David Boni |
And we can help with any inquiry you might have, covering Rhode Island, as well as Connecticut, and Massachusetts.
As the temperature drops and snowflakes start to fall, it’s time to transform your home into a cozy winter haven.
As the days grow shorter and a crisp chill settles in the air, hearts around the world start to beat