Finding not only the lowest home mortgage rate but also a reliable home mortgage lender that offer the best
overall mortgage terms and quality and reliable service, so that you will not only get the best home mortgage rate, but also a pleasant experience throughout the potentially daunting home mortgage loan process. Be sure to leave a comment on the home mortgage lender that you have experienced with to help other home loan seekers.
There are different types of home mortgage loans:
Home Purchase Mortgage Loan
This is the home mortgage loan that you borrow when you purchase a home
Refinance Home Loan
This is the home mortgage loan that you borrow to lower your current home loan interest rate. It is generally a good idea to refinance your current home loan if the home loan interest rate has been dropping to a lower interest rate to save mortgage payment. The money that you borrow from the refiance home loan will be used to pay off your old home loan. If you plan to refiance your home before paying out your home mortgage, you should choose a home mortgage with no prepay penalty and the least points and closing costs.
Home Equity Loan
If the current market appraised value of your property is considerably more than the home purchase price or your current home mortgage balance, typical an home equity loan will be available for you to borrow an amount more than your current mortgage balance using the property as the collateral. The Home Equity Loan can take two types of forms: An Equity Loan, or A Line of Credit (HELOC). The equity loan works just as regular home mortgage loan, only that you are borrowing more money from it therefore you will have a higher monthly mortgage payment; The Equity Line of Credit works like a revolving credit line, you only pay for it and the interests when you charge it. There are limitation of the amount that you can borrow, typically that is a percentage of the home appareciation value
FHA Home Loan and VA Home Loan
FHA Loan is a government insured loan provided by Federal Housing Administration. VA Loan is a government insured loan provided by the Veterans Administration. These types of loans are usually attractive because of their lower rate and the requirement of less down payment, also the fact that they are backed with warranty that the payment are secured by law, although a mortgage insurance premium (MIP) is required with the loan. Additionally, people must meet the minimal qualification to qualify for the FHA loan or VA loan. For detailed explanation of the requirement, advantage and disadvantage of FHA and VA loan, click here.
Home Improvement Loans
This is the type of home mortgage loan for people who want to plan a major and costly home improvement and need a fund to finance the project. Home Improvement Loans is a type of second mortgage home loan and typically will be a higher interest rate than normal first home mortgage loan. If the current market interest rate is lower then the interest rate you are paying for your current home mortgage, then you should also consider doing a refinance for your current home to save on mortgage payment.
Debt Consolidation
For people who have many borrowed a considerable number of loans, especially different types of loans such as personal loans, credit cards loans, auto loans, etc, it is very likely those loans are at relatively high interest rates, a "Debt Consolidation" solution can help them to get a loan from their house at current lower rates, so that the money that are bought from the debt consolidation loan can be used to pay off all the other various loans that had higher interest rates. This is to combine all the debts into one single home loan and make only one home loan payment at a lower interest rate. Sometimes this can be a lifesaver.
Construction Loan
Construction loan is for people who are building a home, either to build on a land that they bought or they will buy.
commercial Loan
For purchase or refinance of a property that is mainly for business purpose instead of as residence, a commercial loan should be seeked.
