Home Real Estate Making Sense of the Alphabet Soup of Home Loans

Making Sense of the Alphabet Soup of Home Loans

by Michael Polzella

There are as many loan options as homes. The most common are FHA, conventional and VA (only available to veterans). Then there’s fixed rate, adjustable rate (ARM) and interest-only to add to your choices.

FHA loans offer lower initial investment, yet mortgage insurance can add up quickly. For those with a 20% down payment, conventional loans offer fixed terms. Depending on how long you plan to own your home, ARMs and interest-only loans may make sense, but pose riskier options than fixed-rate mortgages.

Before deciding, carefully evaluate your needs to determine which mix best fits your budget.

Find out more about mortgage loans.

– Paula DeCrescentis, REMAX of Cherry Creek

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