Comparing Types of Mortgages

Comparing Types of Mortgages

If you are thinking of applying for a mortgage loan, your first step should be to make sure you understand them. There are a number of different ways to obtain a mortgage loan, and the type of mortgage that is best suited for you depends on your unique circumstances. Here is a brief overview of some of the different types of mortgages that are available.

Fixed-rate mortgage loans

A fixed-rate mortgage loan is the most popular type of loan. This loan comes with a single, fixed interest rate that does not change over the entire period that the debt is paid off. If you’re planning to stay put for a long time after you buy your new house, this may be the best type of loan for you.

Adjustable-rate mortgage loans

As the name might suggest, adjustable rate mortgage loans have a fixed interest rate for only a limited period of time. After that, they “float,” which means that they change to be more in tune with the current interest rates. These loans can be extremely helpful for people with low credit scores who want to buy a house.

FHA loans

These loans are backed up by the U.S. Federal Housing Administration (FHA), and they are issued only by lenders who have been approved by the FHA. An FHA loan can enable people with low incomes to buy houses that would otherwise be unavailable to them.

VA loans

These loans are guaranteed by the U.S. Department of Veterans Affairs. VA loans are available only to veterans of the U.S. military. They require no down payment, and they do not need to be backed up by private mortgage insurance.

Alpine Bank has been proudly serving the community of Steamboat Springs, CO, for the past four decades. They have 37 convenient locations throughout the area, and they are continually working to build strong and lasting relationships with their customers. If you would like to learn more about Alpine Bank, call (970) 871-1901.