Buying a home is one of the largest purchases you will ever make. Since a home is such an important step, you will want to make sure that you fully understand the loans that are offered to you. Understanding your loan will make the repayment process less problematic, and allow you to make educated decisions about your loan. There is a large amount of information about home loans to be found online. Learning more can only help you finance the purchase of your new home with confidence. To contact four lenders about your home loans options, fill out our free short form.
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Researching available loans and looking into your own credit report can help you from being frustrated by the loan process. Buying a new home is an exciting experience and taking on a new loan should not take away from that excitement. Apply online using our short form and get started today.
The types of loans available under these two categories are numerous:
- Construction loans give you the opportunity to build your dream home by
financing the cost of materials, labor and land.
- FHA loans are insured by the Federal Government through the Federal Housing
Administration and ask for low down payments while providing low interest
rates. The FHA has special home loan programs for teachers, police officers
and low income families.
- VA loans are insured by the Veterans Administration and provide qualified
veterans with low interest loans, usually with no down payment
An adjustable rate loan has an interest rate that rises and falls at predetermined intervals along with a designated index. An adjustable rate loan is often given to borrowers with less than perfect credit, but does not have to be seen as a negative element of your loan. Though adjustable rates carry certain amount of risk, since it is impossible to predict how interest rates will fluctuate, there are some benefits to minimize the impact of that risk. For example, adjustable rates have rate caps which keep the rate from climbing to high, no matter how the interest rate indexes vary. Also, adjustable rate loans usually have low introductory rates. In the case that interest rates drop, a person with an adjustable rate could stand to save money and may actually pay less for their loan than a borrower with a fixed rate.