5 Common Mortgages, Explained

5 Common Mortgages, Explained

When you’re buying a home, it’s important to understand the different types of mortgages available to you. Here we’ll break down five of the most common types of mortgage loans. Keep in mind that each type has its own benefits and drawbacks, so be sure to do your research before deciding on a mortgage.

5 Common Mortgages, Explained

The most common mortgage types include:

  1. Fixed-rate mortgages
  2. Adjustable-rate mortgages
  3. VA loans
  4. FHA loans
  5. USDA loans

Here’s a closer look at each.

Fixed-Rate Mortgages

Fixed-rate mortgages are the most popular type of home loan. As the name suggests, the interest rate on a fixed-rate mortgage is fixed for the life of the loan. That means your monthly payment will stay the same, even if interest rates rise over time.

One benefit of a fixed-rate mortgage is that you can predict your monthly payments for the life of the loan. That can make budgeting and long-term financial planning easier.

On the downside, fixed-rate mortgages typically have higher interest rates than other types of loans, so your monthly payments may be higher than with other types of loans. And if interest rates fall, you won’t be able to take advantage of it unless you refinance.

Adjustable-Rate Mortgages

Adjustable-rate mortgages (ARMs) have interest rates that adjust over time. The initial interest rate is usually lower than a fixed-rate mortgage, but it can go up or down as time goes on.

The benefit of an ARM is that you may be able to get a lower interest rate than you would with a fixed-rate mortgage. That can save you money on your monthly payments.

The downside is that your interest rate could go up over time, which means your monthly payments could go up as well. And if interest rates rise sharply, you could end up owing more than your home is worth.

Related: ARMs vs. fixed-rate loans

VA Loans

VA loans are available to eligible veterans and their spouses. They’re backed by the U.S. Department of Veterans Affairs and offer competitive interest rates and terms.

One benefit of a VA loan is that you may be able to get a lower interest rate than you would with a conventional loan. You also don’t have to worry about making a down payment, and there’s no private mortgage insurance (PMI) required.

On the downside, VA loans are only available to eligible veterans and their spouses, as well as a small number of other people.

Related: Can you buy a FSBO with a real estate agent?

FHA Loans

FHA loans are backed by the Federal Housing Administration and offer competitive interest rates and terms. They’re often used by first-time homebuyers because they require as little as 3.5% down.

One benefit of an FHA loan is that it’s easier to qualify for than a conventional loan. That’s because you can qualify with a lower credit score and down payment.

On the downside, FHA loans require mortgage insurance, which can add to your monthly payment. And if you stop making your payments, the FHA could foreclose on your home.

USDA Loans

USDA loans are available to eligible rural and suburban homeowners. They’re backed by the U.S. Department of Agriculture and offer competitive interest rates and terms.

One benefit of a USDA loan is that you may be able to get a lower interest rate than you would with a conventional loan. You also don’t have to worry about making a down payment, and there’s no PMI required.

On the downside, USDA loans are only available to eligible rural and suburban homeowners.

Choosing the right mortgage is an important decision, so be sure to do your research before deciding on a loan type.

Related: Why does a home appraisal matter so much?

445 3rd Avenue
$1,100,000
  • 4 Bedrooms
  • 6 Bathrooms
  • 6,861 Sq Ft
  • 22.830 Acres

445 3rd Avenue Jasper, Indiana

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Listing courtesy of Steve Lukemeyer from F.C. TUCKER EMGE.

1987 Grandview Drive
$637,000
  • 4 Bedrooms
  • 5 Bathrooms
  • 5,388 Sq Ft
  • 1.064 Acres

1987 Grandview Drive Jasper, Indiana

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Listing courtesy of Steve Lukemeyer from F.C. TUCKER EMGE.

1928 South A Street
$575,000
  • 3 Bedrooms
  • 3 Bathrooms
  • 1,776 Sq Ft
  • 6.260 Acres

1928 South A Street Jasper, Indiana

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Listing courtesy of Arlet Jackle from RE/MAX Local.

634 E Wright Road
$399,000
  • 3 Bedrooms
  • 3 Bathrooms
  • 2,940 Sq Ft
  • 2.530 Acres

634 E Wright Road Jasper, Indiana

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Listing courtesy of Stacey Hurst from RE/MAX REVOLUTION.

307 Newton Street
$360,000
  • 4 Bedrooms
  • 2 Bathrooms
  • 3,490 Sq Ft
  • 0.371 Acres

307 Newton Street Jasper, Indiana

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Listing courtesy of Tama Stemle from RE/MAX Local.

900 Juniper Court
$336,000
  • 3 Bedrooms
  • 2 Bathrooms
  • 1,502 Sq Ft
  • 0.344 Acres

900 Juniper Court Jasper, Indiana

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Listing courtesy of Dara O'Neil from F.C. TUCKER EMGE.

4667 W Ireland Church Avenue
$334,900
  • 3 Bedrooms
  • 4 Bathrooms
  • 1,568 Sq Ft
  • 1.100 Acres

4667 W Ireland Church Avenue Jasper, Indiana

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Listing courtesy of Marissa Goodness from Carpenter Realty LLC.

980 S Crestwood Dr.
$334,900
  • 3 Bedrooms
  • 3 Bathrooms
  • 2,734 Sq Ft
  • 0.580 Acres

980 S Crestwood Dr. Jasper, Indiana

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Listing courtesy of Larry Carpenter III from Carpenter Realty LLC.

920 Brandon Avenue
$270,000
  • 3 Bedrooms
  • 3 Bathrooms
  • 2,548 Sq Ft
  • 0.259 Acres

920 Brandon Avenue Jasper, Indiana

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Listing courtesy of Sandra Cave from RE/MAX Local.

612 W 8th Street
$229,900
  • 4 Bedrooms
  • 3 Bathrooms
  • 2,549 Sq Ft
  • 0.124 Acres

612 W 8th Street Jasper, Indiana

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Listing courtesy of Dara O'Neil from F.C. TUCKER EMGE.

891 Giesler Road
$208,000
  • 2 Bedrooms
  • 2 Bathrooms
  • 1,800 Sq Ft
  • 0.208 Acres

891 Giesler Road Jasper, Indiana

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Listing courtesy of Kevin Bayer from RE/MAX Local.

4862 N US 231 Highway
$198,500
  • 3 Bedrooms
  • 1 Bathrooms
  • 1,086 Sq Ft
  • 0.360 Acres

4862 N US 231 Highway Jasper, Indiana

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Listing courtesy of Kevin Bayer from RE/MAX Local.

1312 Mill Street
$149,900
  • 4 Bedrooms
  • 2 Bathrooms
  • 1,963 Sq Ft
  • 0.101 Acres

1312 Mill Street Jasper, Indiana

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Listing courtesy of Felicia Drew from Carpenter Realty LLC.

470 Charlene Drive
$619,700
  • 5 Bedrooms
  • 5 Bathrooms
  • 4,353 Sq Ft
  • 1.115 Acres

470 Charlene Drive Jasper, Indiana

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Listing courtesy of Brenda Welsh from SELL4FREE-WELSH REALTY CORPORATION.

6272 N Kellerville Road
$599,000
  • 1 Bedrooms
  • 2 Bathrooms
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  • 27 Acres

6272 N Kellerville Road Jasper, Indiana

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Listing courtesy of Gary Schnell from SELL4FREE-WELSH REALTY CORPORATION.

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This majestic two story home on nearly 23 acres inside the city limits of Jasper is truly one of a kind. As you come up the winding driveway, the property will "wow" you. Inside the front door you will see the two story-foyer, spacious living room with gas fireplace, and the grand dining room with magnificent chandelier. The huge kitchen has been completely remodeled with custom cabinets, quartz countertop, and all of the appliances a chef would want. The family room provides even more space and also has a gas fireplace. The guest suite on the main floor could also be used as a master suite. Upstairs you will find a master suite with a 19' x 15' walk-in closet loaded with shelves and an island. There are two more roomy bedrooms, both of which share access to a recreation room that would be a kid's dream, along with another full bathroom. The finished basement has a wet bar, large recreation area, and a half bathroom. The freshwater pool was installed in 2014, and comes with a climate-controlled pool house with full bathroom. Like tennis? Serve it up on the like-new tennis court that was resurfaced in 2021. The detached garage also has office space and a loft, which is wonderful for people who work from home but don't want the distractions of home. This fantastic home has all new Anderson windows and new flooring throughout the main floor. Also, the landscaping is irrigated, so go enjoy your evenings doing something fun! $1,100,000 Active

445 3rd Avenue Jasper, Indiana

4 Beds 6 Baths 6,861 SqFt 22.830 Acres

Listing courtesy of Steve Lukemeyer from F.C. TUCKER EMGE.

SPACIOUS Describes this 3 bedroom, 2 1/2 bath home with over 1,800 finished square feet, attached oversize 2-car garage on double corner fenced lot with utility shed in backyard. HiLite of Living room is large wall Fireplace; yet it is semi-open to Dining Room & adjoining equipped kitchen. Half Bath & Massive Laundry are convenient to kitchen and entry from garage. Three Full Size bedrooms and 2 Full Baths are down the hall to the Left of the living area. Many rooms have 'Original Oak Hardwood Floors'! For outside entertaining there is a 10 x 22 covered deck as well as two open concrete patios with access to full lot backyard anxious for a New Owner's Playground and/or Garden Spot. City of Huntingburg E/W/S/G Budget Billing $248/Month. Conveniently located on the 'Walking Trail' from Huntingburg Elementary, Southridge Middle & High Schools Complex into Huntingburg to City Park, Historic League Stadium, Uptown Shopping and Huntingburg Memorial GYM. Don't Miss Your Opportunity On This 'Special Find'! $264,777 Active

102 OAK Street Huntingburg, Indiana

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Situated on a .88 acre lot on a quiet cul-de-sac street is this 2894 sq. ft. home. Features include a 2 story great room with pretty windows with remote controlled shades, a cozy gas log fireplace, and a pretty open staircase with wrought iron spindles lining the staircase and spacious loft overlooking the great room. A formal dining room is visible from the great room and foyer with pretty wood floors. The open floor plan flows into the newly updated kitchen with new cabinets, new ceramic floors, quartz counter tops, an extra long island bar, tiled back splash, an additional prep sink, pull out draws, pop up appliance shelf, pantry, stainless steel appliances, and much more. The breakfast nook leads to the attractive patio area complete with an outdoor fireplace for those cool evenings. Located just off of the kitchen is the convenient utility room complete with a laundry sink and storage cabinets. A half bath is located nearby. The main floor master bedroom suite is spacious with a large master bath including a twin sink vanity, jetted tub, stand up shower, and walk-in closet. Level 2 provides 3 additional bedrooms and a full bathroom as well as the gigantic loft area ideal for an office. There is a 2 car attached garage as well as a 2 car detached garage with a half bath and a finished bonus room on level two which adds an approximate additional 500 sq. ft of finished space.This could also be a guest space, rec room, an office, or theater room. With a large cabinet and sink, and built in desk, the possibilities are endless. There is also a large covered porch area allowing for more entertaining opportunities. $459,900 Active

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Listing courtesy of Gary Schnell from SELL4FREE-WELSH REALTY CORPORATION.

 

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