What is a mortgage? What are rates? Let's take a look at the mortgage rates types. The first type would be fixed rate mortgage. There are four types of fixed rate, the first being 30 year fixed rate, the second being 15 year fixed rate mortgages, the third being biweekly mortgages and the last, "convertible" Mortgages. This type is a hybrid of a fixed rate and an adjustable rate mortgage. There are also adjustable mortgage rates. An adjustable rate is a mortgage whereby the rate of payment changes depending on variable indices. So among these mortgage rates, which would you pick?
Basic Home Mortgages, First of all, there are basic home mortgages. These are two different types of mortgages that are the most popular. First is the traditional fixed rate mortgage, and second is the adjustable rate mortgage. With a fixed rate mortgage, your interest rate is locked in when you begin to pay back the loan. Government Guaranteed Mortgage Loans, There are also government guaranteed mortgage loans. This is a FHA loan, which is a fixed rate mortgage, designed for a first time home buyer, who has moderate or low income. VA Loans, VA loans are another type of mortgage loans. USDA Rural Development Guaranteed Housing Loan, Another government guaranteed loan, the USDA rural development loan, is given to people who have low to moderate income, and who are purchasing a home in a place that has been designated as a Rural Development Area. With this type of loan, there is no down payment that is required, and often there is no mortgage insurance required. Read previous articles about mortgage types