A home loan or mortgage simply means a specific amount of money borrowed by a bank or financial institution to buy a home. Home loans are different from personal loans in that they are usually taken to finance the purchase of property. Usually, people take out a home equity loan for the purchase of either a single-family home or an apartment complex, or single-unit home renovations, extension, repair and improvements. There are various types of home loans available today. They can be unsecured or secured home loans.
Unsecured home loans are those in which there is no security of any type required. The most common type of unsecured loan is the personal loan. For example, you can borrow money to buy a home or pay for educational expenses or any other purpose. However, you have to pay a higher interest rate on the loan because the lender does not require any form of security or guarantee.
Secured home loans are different. They require collateral, such as a house or car, which the lender can seize if you fail to repay the loan. The most common form of secured home loans are mortgage loans and VA loans. You can learn about various home loans types on our home loans page. Learn more from us at ascendhomeloan.com/loan-programs
VA mortgages are government-backed mortgages offered by private lenders. VA loans are usually reserved for senior citizens. Homeowners can avail mortgage insurance from their lending institutions as well. This is one option for the borrowers who do not qualify for regular mortgage insurance. They can make use of mortgage life insurance to cover the remaining mortgage balance.
You can learn more about the various types of mortgage loans available by visiting our home loans page. There are three types of fixed-rate mortgages - graduated repayment, first-time buyer mortgages, and interest-only mortgages. You should know more about variable-rate mortgages. Last, but not the least, there are interest-only mortgages. You can also go in for variable-rate mortgages, no documentation loans and cash-out mortgages. All you have to do is to shop around and compare different lenders. For better understanding, continue to read more now!
You can calculate your monthly payment through a mortgage calculator or through an interest rate calculator. To know more about mortgage rates and loan amounts, you can visit our mortgage guide. If you need more help in understanding the terms of different mortgage offers, you can contact a licensed mortgage lender. You can apply for a mortgage right online using an internet mortgage application.