When shopping around for Mortgage Loans Altoona PA, it is imperative you are wise in the process. By shopping around for different lenders and rates, you can help to save yourself money in the process. It is important to understand the mortgage rates are negotiable in any type of mortgage. Whether you are trying to obtain a first mortgage or you are refinancing, you should look around at different lenders for the rates they offer. This can save you on your interest rates and your monthly payments.
The Main Types of Mortgage Loans
There are three main types of mortgage loans. The type you can apply for depends on your credit, financial situation and on the purpose of your mortgage loan. Understanding these three types of Mortgage Loans Altoona PA can help you to make a wise financial decision when it comes to choosing the mortgage loan that will work best for your needs.
Fixed rate mortgages — This type of mortgage features an interest rates that remains the same throughout the life of the loan. The term of the loan is referred to how many years you have to repay. Terms are available in fifteen, twenty and thirty years. Your interest rate will determine how high your monthly payments are.
Adjustable rate mortgages — Also called an ARM, the adjustable rate mortgage features an interest rate that can change during the life of your loan. The rate changes based on rate trends and changing market rates.
Federal Housing Administration loans — FHA loans are government backed loans that allow people to purchase homes with lower interest rates, making them more affordable. In this type of loan, the property must meet government standards.
Understanding these types of mortgage loans can assist you through the process of obtaining one. Your lender will be able to go over your financial records and credit score, so he or she can work with you to get you the best rates possible. If you are in need of a mortgage loan, contact the ARC Federal Credit Union. They can assist you through every aspect of obtaining your loan, so you can get into the home of your dreams.