Owning a home is the american dream. While lenders have made it easier to get a mortgage for that ram home they have also made deciding of the right type of mortgage more challenging. Today there are many type of mortgages to choose from. Finding the right mortgage can be complicated so knowing what your options are is important. Some of the type of mortgage currently available to you include:
Interest Only Mortgage: An interest only mortgage is where for a set term (typically 5 or 10 years) the homeowner only pays the interest monthly and the principal stays the same. After the interest only period the mortgage payment then resets so that over the remaining term of the loan interest and principal is paid off. While not as popular on option of before some consumers with a short time horizon for staying in the home may find this an attractive option.
VA Loan: A VA loan is a mortgage that is guaranteed by the US Department of Veterans Affairs. These loan are issues by qualified lenders throughout the country. VA loan were designed to offer military service men and women as well as their spouses an affordable financing option as to help veterans buy a home with little or no money down.
FHA Loan: FHA loans or mortgages offered by the federal government by the Federal Housing Administration. These loan are offered through qualified mortgage lenders nationwide. FHA loans were created to allow low income americans to have to opportunity to enjoy the benefits of home ownership. Over time individuals who could not afford the down payment a conventional loan required turned to FHA loans as an alternative option. In 2007, The FHA-secure refinancing program was started to help those homeowners who were hit hard by the 2007 sub prime mortgage crisis.
