1. Conventional mortgages are obtained from banks or a mortgage lender but are not insured by the government. The interest may be fixed or adjustable. For those who have a larger down payment and good credit this is the way to go. Mortgage insurance prepayments are often waived for those with a down paymentof 20% or more. (Lerner,2010)
2. Adjustable Rate is in accordance with the lenders prime rate and changes as through out the life of the loan
3. Federal Housing Administration (FHA) loans are also granted by banks and mortgage companies, easier to qualify for and are federally insured, meaning the bank will get paid and the government own the home if you default. Down payments are as low as 3.5% and credit scores can be as low as 580 allowing many who don't qualify for conventional loans to get a home. these loans are also assumable and annual insurance rates are major tax deductions.
4. Veterans Administration mortgages are government guaranteed loans that are for for eligible veterans. There are some caveats to using a VA loan. The buyer must use the property as their main home dwelling but most veterans who use VA loans through the GI bill also don't have to have a down payment. This is great for the buyer and of the buyer doesn't pay on tuenpaon the lender has no reason to worry either!
5. Equity line of Credit or second mortgage is when a home owner borrows money against the equity in the house.
6. Fixed rate mortgages are set at the beginning of the loan period and remain the same for the life of the loan
7. Graduated Payments Mortgage is available through FHA and allows for young or first time buyers, who are expected to gradually increase their income, to purchase a home. A specified time frame allows for the payments to begin low and increase over time.(Investopedia ,n.d)
8. Bi Weekly Mortgages are not offered by every lender but if you can find one, it can help you pay of your home sooner. instead of a monthly payment the buyer makes 26 bi weekly payments which allows for an extra payment per year. This is the loan I would want. Easy bi weekly payments and increased equity with a quicker pay off!
