Understanding different types of mortgage loans

Fixed-Rate Mortgage: A fixed-rate mortgage is a loan with a fixed interest rate for the life of the loan. The interest rate and monthly payments remain the same, making it easier to budget for and plan for the future.

Adjustable-Rate Mortgage (ARM): An adjustable-rate mortgage has an interest rate that can change over time, based on a predetermined index. The interest rate may be lower initially, but can increase over time, making it riskier for borrowers who are not prepared for the potential rate increase.

FHA Loan: An FHA loan is a type of mortgage that is insured by the Federal Housing Administration. These loans are designed to make homeownership more affordable for borrowers with lower credit scores or smaller down payments.

VA Loan: A VA loan is a type of mortgage that is available to eligible veterans and active-duty military personnel. These loans offer competitive interest rates and don't require a down payment.

USDA Loan: A USDA loan is a type of mortgage that is backed by the U.S. Department of Agriculture. These loans are designed to help low- to moderate-income borrowers in rural areas buy a home.

Jumbo Loan: A jumbo loan is a mortgage that exceeds the maximum loan amount set by Fannie Mae and Freddie Mac. These loans are typically used for luxury homes and may have higher interest rates and stricter requirements.

Conventional Loan: A conventional loan is a mortgage that is not backed by the government. These loans may have stricter requirements and a larger down payment, but may offer lower interest rates.

It's important to do your research and talk to a lender to determine which type of mortgage loan is right for your specific situation. Factors such as your credit score, down payment, and income may impact the type of mortgage loan you can qualify for.