Conventional Home Mortgages is a good fit?
There are two different types: fixed-rate and variable rate mortgages.
Fixed Rate Conventional Mortgage Loans
Like the name denotes, a fixed-rate mortgage is entirely predictable and avoids the concerns about the fluctuating interest rate on your mortgage payments going up. They are easy to budget for a long-term usually from 15 or 30 years and will be an excellent service if you need
. A Predictable monthly payment
. Keeping your property for more than five years
Variable Rate Conventional Mortgage Loans
Variable-rate mortgages or Adjustable-rate mortgages (ARMS) are a complex model system than fixed rate mortgages. Initial interest rate of the ARMs may be low, but it may change over time. As a result, the payments may go up or down depending on the fluctuations.
This will be ideal if your:
. Expectancy of ownership is less than five years
. Use a lower rate in the beginning
. Expect to increase the income
. Expecting the rates to decline