THE SUNDIN GROUP | Types of Home Loans

Types of Loans

Questions? Call Us At 602-697-3093

What Type Of Home Loan Meets Your Needs?

As REALTORS® we are often asked "what type of loan do you recommend for me," and this is simply a question that only you and your lender/broker can answer. Every person's financial situation is different and what is a good loan program for one person, may not be for the next person. Bill Chenier, of imortgage was kind enough to write a brief description for us of the most commonly known (and asked about) loan types. If you would like Bill to contact you to discuss the various loan programs available, simply click HERE to send him an email. You can also refer to our Real Estate Glossary page which provides explanations of many mortgage terms & loan types.

Fixed Rate Mortgage
Fixed for the term of the loan-15, 20, 25, 30 year term, the monthly mortgage payment will remain the same for the term of the loan.

Adjustable Rate Mortgage
Also known as an ARM, this is a fixed rate for a period of the loan and will fluctuate to the current interest rate when the ARM matures. The interest rate is calculated from a current index or Treasury bills.

Typically ARM loans are a lower rate for the fixed portion of the note. For the homebuyer who is planning on moving in a few years, this can be a a good loan option to consider.

FHA Loans
A loan insured by the Federal Housing Administration open to all qualified home purchasers. While there are limits to the size of FHA loans, they are generous enough to handle moderate-priced homes almost anywhere in the country. FHA loans only require a 3.5% down payment, and they are typically assumable. One disadvantage is that they have an upfront funding fee of 3.5%.

A lender/mortgage broker will be able to answer any questions you may have regarding which loan program will be best for you.