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Choosing the
Right Mortgage Loan
Selecting the correct mortgage loan is not
easy, as there is a wide selection of different mortgages available.
You should narrow the field by evaluating your personal circumstance and
answering the following questions:
- Do you prefer a fixed or fluctuating
payment structure?
- How quickly can you, or do you intend
to pay off the mortgage loan?
- How flexible are you with payments
today, or in the future?
- How long do you intend to live in the
house?
Below is a list of some of the
more common mortgage types.
1. Fixed-rate
mortgages
- a) 15 year
b) 20 year
c) 30 year
2. Adjustable-rate mortgages (ARMs)
- a) Cost of Funds-Indexed
b) CD - Indexed
c) Treasury- Indexed
d) Once only adjustable
3. Balloon mortgages
4. Government - Insured loans
- a) Federal Housing Administration
(FHA) loans
b) Department of Veterans Affairs (VA) loans
c) Rural Housing Service (RHS) loans
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