A mortgage is a long-term commitment and an essential part of buying a home. Simply put, it’s a loan where the home serves as collateral. When choosing a mortgage, it’s important to understand the different types available. Fixed-rate mortgages keep your interest rate the same for the entire loan period, making your monthly payment predictable. Adjustable-rate mortgages (ARMs) can fluctuate after an initial fixed period, which means your payments could change.
First-time buyers often consider FHA loans, which are backed by the government and require as little as 3.5% down. VA loans, available for veterans and active military members, offer no down payment and no mortgage insurance. USDA loans are another option for buyers in rural or suburban areas, offering zero down payment and low interest rates.
When selecting a mortgage, it’s important to know how much you can afford to borrow. Many lenders may approve you for more than you can realistically repay, so it’s important to shop around for the best rates and terms. First Time Homebuyers: Making Homebuying Easy provides you with the details you need to make an informed decision on your mortgage and take the stress out of the home-buying process.
