Below is the disclaimer:

This is for informative and educational purpose only; the information provided does not include additional fees/charges that might be pertinent to your loan.

Mortgage Loans

Before you buy a house, you need to factor in the amount you are putting down for a house, which is also called a down payment. Down payment is a portion of the purchase price of a house that you must pay up front. The down payment is not a loan from a mortgage lender. Assuming you want to purchase a home for $200,000 and you put down $6,000, which is 3 percent of the purchase price, the mortgage lender will provide you with a loan of $194,000, which is 97 percent of the purchase price. Some of the types of mortgage loans are:

  • Conventional Fixed Rate Mortgages:
  • A conventional fixed rate mortgage is a mortgage in which the interest rate on the loan does not change throughout the life of the loan. The down payment for conventional loans can be as low as 3 percent. Borrowers with a 20 percent down payment do not have to pay for mortgage insurance. Typically, the term of a conventional loan is usually 15, 20, or 30 years. One of the advantages of a conventional fixed rate mortgage is that it enables borrowers to know the interest and principal payments loan since the rate will remain the same throughout the duration of the loan.

  • VA Loans:
  • VA loan is a mortgage loan option available to veterans and active duty military members. It makes it possible for veterans and active military members to purchase a house without requiring a down payment.

  • FHA Loans:
  • Federal Housing Administration loan (FHA loan) is for borrowers with low-to-moderate income. This loan requires a lower minimum down payment and credit scores. With a 10 percent down payment you can obtain an FHA loan. To get an FHA loan, you must go through a lending institution approved by the FHA.

  • USDA Loans:
  • US Department of Agriculture loans (USDA loans) is for rural and suburban homebuyers with low-to-moderate income and it does not require a down payment.