If you are looking for a home, then there is a great possibility that you are looking for a mortgage loan too. Your choice of loan should depend on how much your pocket allows you to pay and for how long are you willing to pay the instalments. Here are 6 types of loans described for your ease.
1. A loan with a fixed interest rate
If you crave predictability and aren’t planning to move from your new home anytime soon, then this is the loan for you. Providing a fixed interest rate, this loan has been quite preferred in the past by people looking for home loans. The best part of this loan is that you don’t have to worry about the changing market status and just have to pay the fixed amount every time.
2. A loan with an adjustable-rate mortgage
Don’t worry about your bad credit record with the bank, because loans with an adjustable-rate mortgage have got you covered. Now you can actually pay a fairly low mortgage rate on your loan if the market remains constant. This must be your choice if you have no problem in paying the loan for a few years at a fluctuating rate.
3. FHA loans
Don’t have lump sum money to buy a new house? Don’t worry! FHA loan is here for you. FDA loan allows you to pay only 3.5% down payment to get your favourite house, while you can pay the remaining amount in a period of 15-20 years.
4. VA Loans
If you are a retired military man and looking for a home to settle down, apply for a VA loan now and relax! These government loans help you get a permanent residence with no down payment or mortgage insurance. Just find a home with their minimum property requirement and make it yours with VA loans.
5. USDA Loan
Want to move to an urban area for better living conditions? Well stop! USDA loan will help you get an exquisite home in your own rural area without any hassle. The government will pay the complete house price for US-based home, just that your debt value shouldn’t be more than 41% of your total income. You can also apply for mortgage insurance in USDA loan.
6. Bridge Loans
In a hurry to settle down in your new home even before selling your old one? Then the bridge loan must be your choice. Just put your old house for sale and move to your new one and pay off your mortgage once your house gets sold. After this, you would only have to deal with your financing expenses.
Looking for a home is not difficult but buying is and getting a loan for it can become a headache for you. To buy a home without the stress of all the paperwork and get a perfect loan for your perfect home, you can contact www.quantumfinance.com.au/home-loans/ and wave your worries away.