There are a lot of types of home loans in U.S. Buying a new house is one of the life’s biggest purchases and assets. Therefore, you should consider carefully before choosing any types of loans. Read this article, we introduce about five types of loans for you.

Home loans
People should consider carefully before choosing any types of home loans

In the previous post, introduces people to some of the necessary information that is useful for getting the personal loan interest rate to get more information people can read the article The personal loan interest rate is depended on credit score Now, let find knowledge about home loans in the post today.


Just like a lot of article posts about government loans, loans for unemployed, borrow money, loans for average credit, personal loan interest rates…. this post about home loans also includes some main parts. They are:

1. Conventional fixed-rate mortgage is one types of home loans

A “conventional” mortgage is a loan that adheres to the established guidelines for the size of your loan and your financial situation. Conventional loans can have lower interest rates than Adjustable-rate mortgage, FHA loans, or VA loans. The terms of these conventional loans typically range from 10 to 30 years.

Conventional fixed-rate mortgages, including monthly principal and interest payments, remain the same throughout the loan term. This is a highlight that makes this loan an attractive option for borrowers who plan to stay in their home for several years.

The alternative to fixed-rate mortgages is an adjustable-rate mortgage (ARM), which features lower interest payments and monthly rules for the first few years. While many people prefer the security of a fixed-rate loan, ARM may be a better option – especially if you know you’ll be moving within the next few years.

This table shows rates for conventional fixed-rate mortgages through U.S. Bank.

Term Rate APR 
30-year fixed 3.750% 3.821%
20-year fixed 3.625% 3.723%
15-year fixed 3.500% 3.625%
10-year fixed 3.625% 3.806%

2. Adjustable-rate mortgage is one types of home loans

An adjustable interest rate mortgage (ARM) is a loan in which the interest rate may change periodically, usually based on a predefined index. An ARM loan can include an initial fixed interest rate of 3 to 10 years. Interest rates may change (adjust) each year after the initial fixed period ends.

ARM loans usually have lower interest rates and are paid monthly compared to loans with a fixed interest rate equivalent during the initial interest rate period, but the interest rate may increase or decrease after the initial interest rate expires. term. While many home buyers prefer the security of a fixed-rate mortgage, ARM can also be a good option – especially if you know you’ll be moving in the next few years.

This table shows rates for adjustable-rate mortgages through U.S. Bank.
Term Rate APR
10-year ARM 4.875% 4.761%
5-year ARM 4.125% 4.435%
3-year ARM 4.750% 4.935%
Home loans
People should consider carefully before choosing any types of home loans

3. FHA loan is one types of home loans

FHA down payment may be lower. An FHA mortgage may require a payment as low as 3.5%. Interest rates may be slightly higher than regular mortgages. Buyers may also have to pay a monthly mortgage insurance premium with a lower payment.

Credit score required for lower FHA loans. Homebuyers can qualify for FHA loans without a long credit history or good credit score.

Popular for refinancing. Many borrowers with an ARM adjustment (adjustable interest rate mortgage) seek to refinance fixed-rate FHA loans. Learn more about your refinancing options.

Term Rate APR
30-year fixed – FHA 4.125% 5.188%
15-year fixed – FHA 3.875% 4.948%

4. VA home loan is one types of home loans

VA loans are home mortgages backed by the Department of Veterans Affairs (VA). With VA loans, eligible service members and veterans can buy a home with little or no cost, or refinance an existing home for cash withdrawal or monthly payments. lower.

Low payment or no down. A VA mortgage loan requires little or no money when closed.

Lower monthly payment. Even without down payment, VA loans do not require mortgage insurance. VA secures part of your loan, thus saving you this monthly cost.

The approval process is simplified. VA loans are designed to offset the common financial challenges facing military and veteran families and to simplify the approval process.

Term Rate APR
30-year fixed – VA 4.125% 4.470%
15-year fixed – VA 3.875% 4.480%

5. Jumbo mortgage loan is one types of home loans

Jumbo mortgages are home loans that exceed the loan limit. A Jumbo mortgages loan is a way to buy a high-priced or luxurious home. Borrowers are required to have low debt to income ratio and high credit score.

The appropriate loan limit is $ 484,350 in most areas of the country, but huge mortgages can exceed these limits. If you are considering buying a luxury or luxurious home, a huge loan might be right for you.

Higher purchase limit. Huge mortgages can exceed the appropriate lending limit, currently at $ 484,350 in most areas of the United States.

Competitive rate. Huge loan rates have reached historic lows in recent years and loan rates up to $ 1 million can be tax deductible.

This post is information about Home loans in the US. If you are lookoing for a home loan in New Zealand, you shoul read the article Four types of NZ home loans with the best interest rate you can choose from

Home loans in Australia have a different interest rate and fee. If you are looking for and choosing a home loan in there, you should read the article You can apply for a home loan Australia if meeting some requirements.

Hillary (Team Content) – Home loans