Options For A Home Loan

Options For a​ Home Loan
Listening to​ all the​ commercials on​ television and radio makes it​ appear that there is​ a​ home loan for anybody that wants one .​
For the​ most part,​ there is​ a​ home loan option for almost anybody.
Having acceptable credit,​ of​ course,​ is​ a​ key element but structuring home loans can take many forms depending upon conditions.
Traditional loans
If you​ are a​ first time home buyer or​ a​ seasoned home owner you​ are likely aware of​ the​ traditional 30 year fixed rate home loan .​
Mom and Dad had one and Grandma and Granddad had one .​
In the​ past,​ there were very few options in​ the​ home loan marketplace .​
Today,​ the​ traditional 30 year fixed rate home loan still exists and has even had a​ bit of​ a​ twist put into it .​
In recent years,​ many people are opting for a​ 15 or​ 20 year fixed rate deal to​ reduce interest costs .​
The idea of​ a​ traditional home loan is​ to​ have predictability in​ payments so a​ subtle shift to​ a​ shorter term is​ a​ big thing.
Variable rates
In the​ past,​ the​ variable rate loans were for real risk takers .​
It still does have a​ certain amount of​ risk associated with it​ but,​ generally,​ it​ can be a​ very sound way to​ go .​
The only real need is​ that you​ have the​ right set of​ circumstances working in​ your favor .​
With a​ variable rate home loan the​ interest rate is​ initially lower than a​ fixed rate loan for a​ set period of​ time (usually 3,​ 5 or​ 7 years.) After this period the​ interest rate changes as​ interest rates change.
The variable rate home loan is​ a​ solid choice if​ you​ are planning to​ not be in​ your home for very long,​ say 3-5 years .​
The thing to​ consider,​ however,​ is​ that if​ economic conditions turn south you​ may end up having higher monthly payments down the​ road .​
In this instance,​ a​ stable and well paying employment situation is​ a​ good thing.
A custom home loan
Offerings of​ home loans have progressed to​ a​ point where many lenders are offering an​ entire grocery basket of​ loan types for just about any borrower .​
Low down payments,​ interest only plans and sub-prime interest rates are just a​ few of​ the​ home loans being offered to​ the​ consumer .​
Each has advantages and disadvantages for the​ consumer and care needs to​ be exercised.
Several of​ these types of​ loans are geared for those that may have issues with making a​ significant down payment or​ those that would like to​ lower monthly payments .​
There really is​ no end to​ the​ type of​ custom home loans available to​ the​ customer.
Finding the​ right lender is​ the​ key .​
If they ask allot of​ questions about your finances they should be able to​ tailor a​ home loan package to​ your needs .​
Being upfront about what your financial situation is​ and what you’d like to​ accomplish will go a​ long way in​ finding the​ right home loan for you​ .​
The market is​ ready to​ lend.

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