Popular Home Loans

Over the years, mortgages have evolved to fit the needs of home owners. There are several different types of loans available to you, each with its own advantages and weaknesses. Whether you have little money to put down on your mortgage or are taking out your third one for a larger home, there are options to suit your needs. Read about each of the different loan types here and decide which one is best for you. Once you've figured it out the type you want, you can apply for a mortgage online with us immediately!

Adjustable Rate Mortgage: An Adjustable Rate Mortgage, referred to as an ARM, offers a fixed interest rate for the first several years, but can change afterwards based off current market rates. For most ARM's, the interest rate will only change during certain periods, known as the adjustment period. The initial fixed interest period can be shorter than a year and is usually less than five years. Obviously, there is some risk with adjustable rate mortgages that your rate may increase some over time, although there are caps that can limit how much the rate is capable of increasing. These types of loans are generally recommended for people who do not have a high income right now, but expect it to increase soon.

Balloon Mortgages: A balloon mortgage is similar to an adjustable rate mortgage because it has a fixed interest rate initially. The major differences being that the entire balance is due at the end of the mortgage and it is typically shorter than the other types of loans. Balloon mortgage only last for about seven years, so you'll need to make sure you'll have the money to pay of the rest of the balance at that time. Many people see balloon mortgages as a short term fix for those that cannot get approved for a fixed rate or adjustable rate mortgage. If you cannot pay the entire balance at the end of mortgage, you will be forced to get a new mortgage or face foreclosure on your home.

Fixed Rate Mortgage: Fixed rate mortgages are one of, if not the most popular type of home loan. They are called fixed rate because their interest rates never change, they will be the same from the time you are approved for the loan till the day it ends. The biggest advantage here is that you'll never have to worry about the mortgage's rate going up; however, most fixed rate mortgage lenders will have a higher interest rate from the start to accommodate for this. Fixed rate mortgages are typically considered to be very safe, although they may be more difficult to get approved for if your finances are not in order.