Buying home is one of the biggest investments you will ever make. Use this calculator to see if you're ready to buy, and what type of house payment best fits into your budget. I can help narrow down all homes within your price range, no matter who is listing it!
Basic Home Mortgage Categories
Fixed-rate Mortgage Types
This is the granddaddy of them all. Today you can choose from 5-year, 10-year, 15-year, 20-year-, 30-year, 40-year and even 50-year fixed-rate mortgages, all of which are completely amortized.
FHA mortgage loan types are insured by the government through mortgage insurance that is funded into the loan. First-time home buyers are ideal candidates for an FHA loan because the down payment requirements are minimal and FICO scores do not matter.
This type of government loan is available to veterans who have served in the U.S. Armed Services and, in certain cases, to spouses of deceased veterans. The requirements vary depending on the year of service and whether the discharge was honorable or dishonorable. The main benefit of a VA loan is the borrower does not need a down payment. The loan is guaranteed by the Department of Veterans Affairs but funded by a conventional lender.
Interest-only Mortgage Types
Calling a mortgage loan type an "interest-only mortgage" is a bit misleading because these loans are not really interest-only, meaning the borrower pays only interest on the loan. Interest-only loans contain an option to make an interest-only payment. The option is available only for a certain period of time. However, some junior mortgages are indeed interest-only and require a balloon payment, consisting of the original loan balance at maturity.