What Mortgage Is Best For You?

Several varieties of mortgage loans exist: Conventional Loans, FHA Loans, VA Loans, Fixed-rate Loans, Adjustable-Rate mortgages, Jumbo loans, and more. Each mortgage loan may require certain down payments or specify standards for loan amount, mortgage insurance, and interest. 
 
PLEASE ASK YOUR LENDER TO ADVISE YOU ON WHAT’S BEST FOR YOU!
 
Fixed-Rate Loan: 
The most common type of conventional loan, a fixed-rate loan prescribes a single interest rate—and monthly payment—for the life of the loan, which is typically 15 or 30 years. One type of fixed-rate mortgage is a jumbo loan.
Best for: Homeowners who crave predictability and aren’t going anywhere soon may be best suited for this conventional loan. 

Adjustable-Rate Mortgage:
Adjustable-Rate Mortgages offer mortgage interest rates typically lower than you’d get with a fixed-rate mortgage for a period of time—such as five or 10 years, rather than the life of a loan. But after that, your interest rates (and monthly payments) will adjust, typically once a year, roughly corresponding to current interest rates.  
Best for: Home buyers with lower credit scores are best suited for an adjustable-rate mortgage. Since people with poor credit typically can’t get good rates on fixed-rate loans, an adjustable-rate mortgage can nudge those interest rates down enough to put homeownership within easier reach.
 
FHA Loan
While typical home loans require a down payment of 20% of the purchase price of your home, with a Federal Housing Administration, or FHA loan, you can put down as little as 3.5%. That’s because Federal Housing Administration loans are government-backed.
 
Best for: Home buyers with meager savings for a down payment are a good fit for an FHA loan. The FHA has several requirements for mortgage loans.
 
VA Loan
If you’ve served in the United States military, a Veterans Affairs or VA loan can be an excellent alternative to a conventional loan. If you qualify for a VA loan, you can score a sweet home with no down payment and no mortgage insurance requirements.
Best for: VA loans are for veterans who’ve served 90 days consecutively during wartime, 180 during peacetime, or six years in the reserves.

USDA Loan
Another government-sponsored home loan is the USDA Rural Development loan, which is designed for families in rural areas. The government finances 100% of the home price for USDA-eligible homes—in other words, no down payment necessary—and offers discounted mortgage interest rates to boot.
Best for: Borrowers in rural areas who are struggling financially can access USDA-eligible home loans. These home loans are designed to put homeownership within their grasp, with affordable mortgage payments. 

Bridge Loan
Also known as a gap loan or “repeat financing,” a bridge loan is an excellent option if you’re purchasing a home before selling your previous residence. Lenders will wrap your current and new mortgage payments into one; once your home is sold, you pay off that mortgage and refinance.
Best for: Homeowners with excellent credit and a low debt-to-income ratio, and who don’t need to finance more than 80% of the two homes’ combined value. 

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Natalie Nicole, M.S.A.
REALTOR ®
3100 Gentian Blvd
Office 12 | Suite 007L
Columbus, GA 31907
Cell: 706.341.3950
Fax: 706.562.8447
Email: [email protected]

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Source: https://www.realtor.com/advice/finance/types-of-mortgages/