- Fixed-rate mortgages: These mortgages have an interest rate that stays the same for the entire term of the loan. This can provide peace of mind knowing that your monthly payments will never change.
- Adjustable-rate mortgages (ARMs): These mortgages have an interest rate that can change over time. This can be risky, but it can also save you money if interest rates go down.
- FHA loans: These loans are backed by the Federal Housing Administration and are designed for first-time homebuyers and those with lower credit scores.
- VA loans: These loans are backed by the Department of Veterans Affairs and are available to active-duty military members, veterans, and their families.
- USDA loans: These loans are backed by the US Department of Agriculture and are available to low- and moderate-income borrowers in rural areas.
How do I compare mortgages?
Once you’ve found a few mortgages that you’re interested in, it’s important to compare them carefully. Be sure to compare the following:
- Interest rates: This is the most important factor to consider when comparing mortgages. The interest rate will determine how much you pay in interest over the life of the loan.
- Fees: Mortgages can come with a variety of fees, such as origination fees, appraisal fees, and closing costs. Be sure to compare the fees of different loans before making a decision.
- Terms: The term of the loan is the length of time you have to repay the loan. Most mortgages have terms of 15 or 30 years.
How do I choose the right mortgage for me?
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