Q: What are the different types of mortgages available?
A: There are various types of mortgages available, each with its own set of features and benefits. Some common types include:
- Fixed-rate mortgage: The interest rate remains the same throughout the loan term, providing stability and predictability in your monthly payments.
- Adjustable-rate mortgage (ARM): The interest rate fluctuates based on market conditions, which can lead to lower initial payments but also carries the risk of higher payments in the future.
- FHA loan: Backed by the Federal Housing Administration, FHA loans are designed for first-time homebuyers and those with lower credit scores. They typically require a lower down payment and have more flexible credit requirements.
- VA loan: Available to eligible veterans and active-duty military members, VA loans are backed by the Department of Veterans Affairs. They offer competitive interest rates, no down payment requirement, and less stringent credit requirements.
Q: How do I determine how much I can afford to borrow?
Views: 3
