Types Of Home Loans

Dated: February 2 2018

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There are many different types of home loan for buyers to choose from when purchasing a home.

It is important to know the differences in each type so that you make the best decision for you. A mortgage broker will be able to help you choose the type of loan, interest rate, and terms that best meets your needs.

Fixed rate loans allow you to keep the same interest rate for the entire life of your loan. This type of loan is especially good when interest rates are low.

Adjustable rate loans, also know as ARM's, can be beneficial when interest rate are higher. With this type of loan the initial interest rate may change as market rates change. The amount and frequency the interest rate can change is usually governed by the terms of the loan.

Balloon loans are short term mortgages. Interest rates are usually very low and the term is usually between three to seven years. With this type of mortgage you make payments are based on a 30 year term but you only make payments for 3-7 years and then the remainder of the loan in due in one payment.

Government-Backed loans offer special terms to qualified buyers. The Department of Veteran Affairs offers VA loans with 0% down payment. This type of loan is for military personnel & veterans. Another type of government-backed loan is offered by the Federal Housing Administration, FHA, which offers loans with down payments as low as 3.5%. This type of loan is for everyone.

It is always a good idea to contact a few different lenders when looking to buy a house. This way you will be able to compare interest rates and terms to find the best loan for you!

Hickory Real Estate Group is a full service real estate company located in Hickory North Carolina.  We serve Hickory, Newton, Conover, Granite Falls, Hudson, Lenoir, Mountain View, Lake Rhodhiss, and Lake Hickory.

We offer knowledge, personal attention and communication that is needed for a smooth home buying experience. Just call or email us and you will see how quickly we respond to your needs.

We work hard to give our clients the best possible real estate experience and we want to work to get your business. You’ll see our work ethic and efficiency is second to none.

Whatever your real estate needs call for we can help.  SEARCH NOW!

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Kathleen Kelly

I am a Broker/Owner and Chief Operations Manager of our office that my husband and business partner Mike Kelly founded in 2010. We are proud to say that we have grown our firm into the top independ....

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