What are the differences between the various types of loans?
Today s homebuyer has more financing options than have ever been available before. There are financing packages designed to meet the needs of virtually anyone. While the different choices may seem overwhelming at first, the overall goal is really quite simple: you want to find a loan that fits both your current financial situation and your future plans. Be sure to spend some time talking with different lenders before deciding on the right loan for your situation. You can also use the calculator, Which is better, fixed or adjustable? , to compare the differences over time between these two types of mortgage loans. In addition to more traditional fixed-rate and adjustable-rate mortgages, there are hybrid loans that combine features of both. Fixed-Rate Mortgages As the name implies, a fixed-rate mortgage carries the same interest rate for the life of the loan. Traditionally, fixed-rate mortgages have been the most popular choice among homeowners, because the fixed monthly payment is easy
