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1. You get to choose: FHA or conventional mortgages.

There are lots of particular mortgages available, but they fall into two categories: FHA loans, and conventional loans.

Most mortgage brokers will simply assume you want a FHA loan, but you should choose for yourself.

FHA Loans:

There are pros and cons to FHA loans. The biggest pro: An FHA loan generally requires a much lower down payment, so you don’t need as much up front to buy the house. The biggest con: you have to pay monthly mortgage insurance and other fees, and sometimes a higher interest rate, because you had a smaller down payment.

Conventional Loans:

For some people, conventional loans are a lot smarter. Although they require a larger down payment and they generally require better credit, you save money in the long run by avoiding mortgage insurance, fees, and interest.

Continue on to Three Things You Probably Didn’t Suspect About Mortgages: Number 2

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