What type of mortgage loan works best for you?
Your mortgage loan consultant will be able to discuss the best mortgage loan program for you. Basically all mortgage loans belong to two main groups: conventional and government.
Two types of conventional loans:
- Fixed rate: Traditional type of financing. The interest stays the same for the full term of the loan, typically 15 or 30 years with predictable and stable payments.
- Adjustable rate: An adjustable rate mortgage (ARM) interest is linked to a financial index, such as a treasury security, so the monthly payment can vary over the life of the loan, usually 25 to 30 years. There are lower initial payments. Some ARMs can be converted to fixed rates generally after the first 5 years.
- FHA loans: Very low down payments with a maximum limit.
- VA loans: Qualified veterans can buy a home up to $203,000 with no down payment. State VA loans are available to Wisconsin veterans.
- Rural Development: Home loans wit no down payment to low- and moderate-income persons who live in rural areas or small towns.
- WHEDA: Low down payments and below-market interest rates. Interest rate is fixed for 15 to 30 year loan term.