There are many different mortgage loan options. While many people
think of a mortgage as the loan used to buy a home, it is actually
any loan that is secured by home equity. So a home improvement
loan secured by the house is a mortgage, just as the loan used to
buy the house is a mortgage.
Mortgages come in many varieties, and can be structured many different ways. The most common mortgage loan is a 30-year fixed-rate mortgage. Often, homeowners may refinance this 30-year fixed rate loan into a 15-year fixed-rate mortgage after paying on the original mortgage for a number of years. Although not as popular today because mortgage rates have been historically low for so long, there are also adjustable rate mortgages (a 5/1 or 7/1 ARM for example). With today's rates, an adjustable rate mortage doesn't make a whole lot of sense.
Buyers also have plenty of options when it comes to types of financing. If all of the "risk factors" are excellent (strong credit, significant down payment, good reserves, etc.), a borrower will look closely at a Conventional mortgage. But there may be wisdom in looking at government loans even if this is the case. FHA loans can provide a great option if you need a lower down payment than a typical Conventional mortgage requires, or if you seek higher seller concessions (to cover closing costs). If you are a veteran, you can acquire a VA mortgage that doesn't require a down payment at all. This is also true of a "Rural Development" mortgage (or USDA mortgage).
To conclude, I have briefly discussed a variety of options for a mortgage, and there are many more. To get a good idea of what may work best in your circumstances, I'm happy to provide a no-cost consultation.
If you have questions about any aspect of mortgage lending, I'm here to help! Contact me today.