There are different ways to finance a home. Understanding your home financing options can be the first step in making the right choices.

 

One of the common home financing options is a fixed rate mortgage loan. With this loan, the interest rate you have at the beginning of the loan is the same rate you will have throughout the loan. This means there aren’t any surprises in the loan.

 

An adjustable rate mortgage works differently. With this loan, the rate changes at a specific interval, which can be one to five years. If used correctly, this type of loan can help you save money in the short term. When not used correctly, there can be a lot of risks with this home financing option. This option isn’t a good strategy if you plan on staying in the home for a long time.

 

FHA loans can also be used for first time homebuyers and allow you to make a smaller down payment. They can be easier to qualify for as well.