Which are the types of housing loans?

When you dream about having your first home, or when you think that it is already time to buy a new house as an investment, you start to think... "But...! how shall I pay it?"

There are many ways to finance your house.

Throughout the years different types of Housing Loans have been developed, with the purpose of meeting the needs and diverse economic conditions. For you to know them and be able to choose the most convenient and the one that best fits your income and possibilities, we will make an analysis of the different types of housing loans.

Types of   Loans

Fixed-interest rate mortgages

Variable-interest rate mortgages

FHA loans

VA loans

Fixed-interest rate mortgages

This type of loan guarantees that the interest rate and monthly payments do not vary during the term of the loan. Generally, it has a payment period (deadline)of   ten, fifteen, twenty, thirty and even 40 years.

Loans with shorter terms have higher monthly payments, but you will pay a lower interest rate in general terms and you will accumulate capital faster.

If you wish to live in your house for many years and the current long-term interest rates are low, it is possible that this mortgage meets your needs.

It is essential to remember that the mortgage, in addition, provides the maximum deduction of tax-interest.

Variable-interest rate mortgage

With this type of mortgage it is possible that the interest rate that you are paying adjusts periodically, according to market fluctuations.

So, when interest rates decrease, your monthly mortgage payments can also be reduced.

Mortgages with variable-interest rates offer a lower rate than those with fixed interest rate, which could help you meet the requirements to obtain a loan for a higher balance.

Some mortgages allow, sometimes, to convert a variable loan into a fixed-interest rate one.

Government loans

There are also two federal agencies offering loans guaranteed by the government:

The Federal Housing Administration (FHA) and Veteran Affairs Department (VA)

These loans demand that the property that shall be acquired meet certain basic requirements.

FHA Loans

With FHA insurance, you can buy a house with a low down payment and even finance the closing costs.

The mortgage loans of the FHA have a maximum limit, that varies according to the average cost of the house in the area you may choose.

VA Loans

If you are a qualified veteran, the VA loan will be very beneficial to you, since it will enable you to buy your house without a down payment, when you obtain a loan with a determined maximum limit. This program can be the one that best fits you.

But, no doubt, we can show you all the alternatives.

Ask us and we will be pleased to inform you. We are ready to answer   all your inquiries and help you choose the most convenient loan, the one that best fits your needs, dreams and projects.

Darío Ortíz
Director

Hispanic Real Estate & Financial Group LLC
Creating abundance for Hispanic   families
http://prestamosviviendahispanosdc.com
dario@prestamosviviendahispanosdc.com