There are an infinite number of loan options to consider when obtaining a mortgage loan. Understanding what the best type of loan program for you is key to making sure you get the best loan available tailored to your needs. Since the type of home loan you choose is one of the biggest decisions you’ll make you can rest easy knowing that the experienced loan officers at Gold Star Mortgage Corporation are standing by waiting to help you navigate through the entire process.
There are 4 basic types of mortgages
1. Fixed – The borrower makes the same payment of principle and interest throughout the loan term – usually 30 or 15 year term.
2. Adjustable Rate Mortgage (ARM) – the borrower pays principle and interest for one-year then the interest rate can change based on the index the loan is associated with.
3. Hybrid - Fixed for a certain period of time then adjusts
4. Interest-Only – the borrower makes an interest only payment and the principle balance remains unchanged