- Fixed-Rate Mortgages:
- Interest rate remains the same throughout the loan term.
- Predictable monthly payments make budgeting easier.
- Adjustable-Rate Mortgages (ARMs):
- Interest rate can change periodically based on market conditions.
- Initial lower rates can be attractive but come with the risk of higher payments in the future.
- FHA Loans:
- Backed by the Federal Housing Administration, ideal for first-time buyers.
- Lower down payment requirements and more flexible credit guidelines.
- VA Loans:
- Available to veterans and active military members, guaranteed by the Department of Veterans Affairs.
- No down payment required and competitive interest rates.
- Conventional Loans:
- Not insured by the government, typically require a higher credit score.
- Available in fixed or adjustable rates with various term lengths.
- USDA Loans:
- Offered by the U.S. Department of Agriculture for rural and suburban homebuyers.
- No down payment required and lower interest rates.