What type of mortgage is right for you?

What type of mortgage is right for you?

There are several different types of mortgages and it’s important to know what mortgage is best for you and your personal situation. Common mortgage types include:

• Fixed-rate mortgages – These mortgages offer an interest rate that will never change over the life of the loan. The length (known as the term) of your fixed rate mortgage can be 15, 20 or 30 years. Note: The higher the interest rate, the higher your monthly mortgage payment.
• Adjustable-rate mortgage – An adjustable-rate mortgage (ARM) has an interest rate that changes based on varying market rates and economic trends. An increase in the interest rate will result in a higher monthly payment.
• Federal Housing Administration Loans (FHA) and Veterans Administration (VA) Loans – Government housing loans help lower the costs of mortgages so more people can afford to own their own home. Only approved lenders can offer these loans, and the property must meet required standards.