Types of Loans - page 2
RHS Loans
The Rural Housing Service - for rural residents, minimal costs, no downpayment.
State and Local Housing Programs
- lower upfront fees, usually fixed rate mortgages, lower interest rates.
Balloon loans
A long-term loan with very low interest rates. The drawback is that you have to be self-disciplined to be able to pay the large single payment at the end of the loan because you pay small or even no payments during the life of the loan.
Option ARM Loans
With this type of loan you have a lot of options on the process of your monthly payments. It offers low minimum payment, fully amortizing payment, interest only.
Disadvantages: there's no equity building unless you choose bigger amortizing payments.
In other words this loan is a good choice for people who really realise and understand the drawbacks, are financially secured and prefer flexibility.
The Rural Housing Service - for rural residents, minimal costs, no downpayment.
State and Local Housing Programs
- lower upfront fees, usually fixed rate mortgages, lower interest rates.
Balloon loans
A long-term loan with very low interest rates. The drawback is that you have to be self-disciplined to be able to pay the large single payment at the end of the loan because you pay small or even no payments during the life of the loan.
Option ARM Loans
With this type of loan you have a lot of options on the process of your monthly payments. It offers low minimum payment, fully amortizing payment, interest only.
Disadvantages: there's no equity building unless you choose bigger amortizing payments.
In other words this loan is a good choice for people who really realise and understand the drawbacks, are financially secured and prefer flexibility.
