Different Types Of Mortgage Loans
Know Your Loans
Choosing your loan is one of the most important decisions when buying a house. There are a variety of loans and the one you choose will affect your interest rate, monthly payment, down payment and closing costs so it’s important to choose wisely. Be sure to consult your mortgage lender for more information and guidance.
Conventional 30 Years Details
- Low monthly payments that don't change
- Better for larger down payments
- Mortgage Insurance charged for down payment less than 20%
- Mortgage Insurance can be elilminated after 20% equity reached
- Minimum Down Payment 3%
Conventional 15 Years Details
- Higher monthly payments than 30 years
- Loan is paid off faster and less interest is paid
- Mortgage Insurance charged for down payment less than 20%
- Mortgage Insurance can be elilminated after 20% equity reached
- Minimum Down Payment 3%
FHA 30 Years Details
- Possible to qualify for with lower credit score
- Low down payment
- Mortgage Insurance charged upfront and monthly
- Mortgage Insurance is paid for the life of the loan
- Minimum Down Payment 3.5%
VA 30 Years Details
- Only for qualified military personnel
- No down payment required
- Funding fee rolled into the loan
- No mortgage insurance charged for life of the loan
- Minimum Down Payment 0%