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If you are in the home loan market, you might consider a traditional home loan. Traditional home loans are different from those guaranteed or insured by the federal government, such as the FHA (Federal Housing Administration), VA (Veterans Administration), or RHA (Rural Housing Administration).
Recently, conventional mortgages were the only type of mortgage. They are still the most used home purchase loans today. There are various types of conventional loans. Perhaps the most common are fixed rate mortgages. You can visit teampierocornejo.com/prestamos-convencionales to view conventional mortgage rates (which is also known as visite teampierocornejo.com/prestamos-convencionales para ver las tasas hipotecarias convencionales in the Spanish language) before buying a home.
With a fixed rate mortgage, you get a loan at a fixed rate; The interest rate never changes during the life of this loan. Fixed rate mortgages are usually offered for 15 or 30 years.
Fixed rate mortgages have the advantage that the homeowner can receive fixed monthly mortgage payments for the life of the loan. The monthly mortgage rate is set on a schedule and the homeowner pays the same mortgage rate from month to month for the life of the loan.
The second most commonly used mortgage is the floating rate mortgage. The adjustable rate mortgage, or ARM, became popular at the start of the decade as more and more homeowners decided to join the real estate boom and buy homes.
In general, an adjustable rate mortgage is only a good idea if you plan to live in your home for five years or less. Otherwise, a fixed rate mortgage is usually better than both mortgages.