In the US, there are five types of mortgage. Each type of mortgage has some different benefits and feature. In this article, Infocreditfree.com introduce to people all types of mortgages as well as mortgage interest rates of them. People should consider carefully before choosing any type.

There are five types of mortgage with different mortgage interest rates

In the previous post, Infocreditfree.com introduces people to some of the necessary information that is useful for getting the homeowner loans to get more information people can read the article You need to own some property before you apply for homeowner loans. Now, let find knowledge about the mortgage interest rates in the post today.

MORTGAGE INTEREST RATES

Just like a lot of article posts about loans for unemployed, HELOC, really poor credit loans, mortgage application, loans for average credit…. this post about the mortgage interest rates also includes some main parts. They are:

1. Conventional fixed-rate mortgages

The “fixed-rate” mortgage that comes with interest rates will not change throughout your home loan period. A “regular” mortgage (compliant) 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 giant loans, FHA loans, or VA loans. The terms of these conventional loans typically range from 10 to 30 years.

There are some benefits of these type of mortgage, they are:

  • There are no surprises on interest rates: With a fixed-rate mortgage or regular loan, the interest rate won’t change over the life of your loan, protecting you from the possibility of a rate rise.
  • Best fixed rate: Conventional mortgages can offer interest rates and APRs that are lower than other fixed rate loans.
  • Fewer laps to jump over: Conventional mortgages may require fewer documents than FHA or VA loans, which can speed up the overall processing time.
  • Refinancing options are available: Regular fixed rate mortgages are available to refinance your existing mortgage – and especially popular 15 and 20 year options.

This is the table of rates for conventional fixed-rate mortgages through U.S. Bank.

Rates for conventional fixed-rate mortgages through U.S. Bank.
Term Rate APR 
30-year fixed 4.000% 4.072%
20-year fixed 3.875% 3.974%
15-year fixed 3.750% 3.876%
10-year fixed 3.875% 4.057%

2. Adjustable-rate mortgages

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. For example, with an ARM 5/1 loan for a period of 30 years, your interest rate will be fixed for the first 5 years and may fluctuate or increase each subsequent year for the next 25 years.

There are some benefits of these type of mortgage, they are:

  • Best short-term ARM mortgage rates: Adjustable-rate mortgages (ARMs) typically have lower rates and APRs during the initial interest rate than comparable fixed-rate mortgages.
  • Low monthly payment: An adjustable interest rate mortgage (ARM) allows you to keep your monthly payments low during the initial term of your home loan, giving you a faster mortgage option.
  • Refinancing options: Adjustable interest rate mortgage loans (ARM) are normally available to refinance existing mortgages.

This is the table of rates for Adjustable-rate mortgages through U.S. Bank.

Term Rate APR 
10-year ARM 4.875% 4.761%
5-year ARM 4.375% 4.527%
3-year ARM 4.750% 4.935%

3. FHA mortgages

The FHA (Federal Housing Administration) loan is a government-backed home mortgage with more flexible loan requirements than regular loans. Because of this, FHA mortgage rates may be slightly higher. Buyers may also have to pay monthly mortgage insurance premiums, along with their monthly loan payments.

There are some benefits of these type of mortgage, they are:

  • 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.
  • The required credit score 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.

This is the table of rates for FHA mortgages through U.S. Bank:

Rates for FHA mortgages through U.S. Bank.
Term Rate APR
30-year fixed – FHA 4.250% 5.315%
15-year fixed – FHA 3.875% 4.948%
There are five types of mortgage with different mortgage interest rates

4. VA mortgages

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.

There are some benefits of these type of mortgage, they are:

  • 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.

This is the table of rates for VA Home loans through U.S. Bank:

Term Rate APR
30-year fixed – VA 4.250% 4.598%
15-year fixed – VA 3.875% 4.480%

5. Jumbo mortgages

Jumbo mortgages are home loans that exceed the loan limit. A giant 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.

There are some benefits of these type of mortgage, they are:

  • 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 is the table of rates for Jumbo Loans through U.S. Bank:

Term Rate APR
30-year fixed – jumbo 4.000% 4.021%
20-year fixed – jumbo 4.000% 4.030%
15-year fixed – jumbo 4.000% 4.038%

This post is information about mortgage interest rates in the USA. Also if you are looking for information about personal loans in Australia, you should read a lot of articles of Loansaustralia.net such as Four steps to register Now Finance personal loans

Personal loans in Australia have a different interest rate and fee with personal loans in New Zealand. Therefore, if you want to know about the personal loans in New Zealand, you should read the article from Loansnz.net such as The loans of Admiral Finance helps customers get up to $50,000

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