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There are many home loan types to consider when seeking financing to purchase a home. The loan you choose will have a long term effect on your financial picture so it is important that you understand your options before you commit.
• Fixed Rate Mortgages
Fixed rate mortgages are probably the most popular loan due to the fact that the payment stays the same throughout the life of the loan. Each monthly payment is comprised of a portion to pay the principle of the loan and the interest on that loan. Many times the monthly payment can include the payment for the taxes and insurance due on the home. The payments continue for a pre-determined time after which the home is paid off. The most common terms are 30 year and 15 year.
