So Many Types of Loans, How Does One Choose?
July 22nd, 2009
Categories:Home Buyer Education
When talking to a loan officer, you will normally hear about the traditional types of loans. In this market you might only hear about FHA loans because they are becoming so popular and universal.
However, a good loan officer should be able to give you additional financing options to help you make the best decision for your specific needs, wants and goals.
Here is a list of the most common financing techniques:
- Straight Loan
- Interest Only Mortgage
- Balloon Payment Loan
- Amortized Loan
- Adjustable Rate Mortgage
- Growing Equity Mortgage
- Reverse Annuity Mortgage
Straight Loan (aka Term Loan)
With a straight loan, the borrower makes periodic payments on the interest until the end of the term. At the end of the term, the borrow then pays the principal (loan) amount in full.
A straight loan used to be the only type of loan available. However nowadays this type of loan is most commonly seen in Read the rest of this entry »
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