Getting the right type of real estate home loan is an important part of the home buying process. The following is basic information regarding the types of real estate home loans that are common in the market today.

Fixed-rate mortgages Fixed rate mortgages are mortgages where the interest rate stays the same for the entire term of the loan. The advantage to a fixed rate mortgage is that if you lock a relatively low rate, your payment won’t go up when rates do.

Adjustable-Rate Mortgages With an adjustable rate mortgage, the rate of the loan can change throughout the term of the loan. The rate of the loan is based on adding or subtracting points to a fixed base.  Loans usually have a cap that will limit the amount of change for any one adjustment period or over the life of the loan.

Hybrid loans A hybrid loan combines a fixed period along with an adjustable component. Usually these loans are fixed for a period of time and then the loan becomes adjustable where it is dependant on current rates.

FHA real estate home loans An FHA loan is a loan in the United States that is insured by the Federal Housing Administration.  The FHA lending limit for single family residences in Texas is currently set at $200,160 as of 2007.

VA real estate home loans A VA loan is a loan in the United States guaranteed by the Veterans Administration. The loan may be issued by qualified lenders. The VA was designed to offer long-term financing to American Veterans or to their surviving spouses.

If you would like more information about loan programs available through Realty Revolution, then please fill out the following form or contact me at 972-345-1070.