The Loans to Get You Home

Fixed-Rate Mortgages

This loan is a good option for people who want the stability of a payment that won’t change. With a fixed-rate mortgage, your principal and interest payments remain the same for the duration of the loan, although property taxes and insurance costs may increase.

Adjustable-Rate Mortgages (ARMs)

ARMs generally offer lower initial interest rates than comparable fixed-rate mortgages, which can increase your purchasing power. ARMs can make sense if you plan move to another home or refinance in the relatively near future. This allows you to take advantage of the lower initial rates and payments at the early part of the loan before you see any significant increases.

Interest-Only Mortgages

With this loan, you only pay the interest portion of your mortgage, which means your monthly payments won’t build equity. However, there are three major benefits: 1) You can qualify for more home. 2) Your mortgage payment becomes lower. 3) It frees up more cash, allowing you to invest the money you would have paid toward the principal in other higher-yielding investments.

Government Loans

The Federal Housing Administration (FHA) and the U.S. Department of Veteran's Affairs (VA) offer government-insured loans. These loans have low down payment requirements and more flexible guidelines that make them easier for first-time buyers to obtain.