What types of mortgages are available?
There are various types of mortgages available, each with its own unique characteristics and benefits. Some of the most common types include:
- Fixed-rate mortgages: Offer a fixed interest rate for the entire loan term, providing stability and predictability in monthly payments.
- Adjustable-rate mortgages (ARMs): Feature an interest rate that can fluctuate over time, potentially leading to lower initial payments but also introducing the risk of higher payments in the future.
- FHA loans: Backed by the Federal Housing Administration, these loans are designed for first-time homebuyers or those with lower credit scores and require a lower down payment.
- VA loans: Available to eligible veterans and active-duty military members, these loans offer competitive interest rates and no down payment requirement.
- USDA loans: Designed for low- to moderate-income borrowers in rural areas, these loans offer 100% financing with no down payment required.
What factors influence mortgage rates?
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