Chase Mortgage Guide

Understand the different loan options

By Chase | Published: Nov 13, 2013

While the details of every loan are different, each lender has a variety of loan options. You'll want to ask each lender you contact what special loan programs they offer that you may qualify for, such as programs for low-income families, veterans or union members.

Here are some of the basics you should know about mortgage loan programs. Discuss the different options available with your lender.

  • Loan Types

    Most loans fall into two categories: fixed-rate and adjustable-rate. Fixed-rate loans provide a constant interest rate and monthly payment for the life of the loan. The rate and payment on an adjustable-rate loan can fluctuate.

  • FHA/VA Loans

    The Federal Housing Administration and the Veterans Administration offer loan programs with low down payment requirements. The FHA allows as little as 3.5% down payment and there may be no down payment required for VA loans. Ask your lender about these programs.

  • Low Down Payment Loans

    Some lenders also offer low down payment loans. You may be able to put as little as 5% down. Ask your lender about their programs.

  • Loan Terms

    Most mortgage loans are 30-year loans. However, there are also 15-,20- and 40-year options.

  • Ways to Reduce Your Rate

    You can reduce your interest rate when you "pay for points" to lower your monthly payment. One point costs 1% of your loan amount and can reduce your interest rate by about 0.25%.

Your lender can explain the details of loan programs available and help you decide which loan program is best for you.

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