Types of mortgage lenders
Types of loans. There are several types of mortgages — including jumbo, conventional, fixed rate, adjustable rate and government insured. Not all lenders offer all types, so knowing which kind you want can help you narrow down your options. Mortgage rates. Generally speaking, the lower the rate on a home loan, the less you’ll pay over time. Down payment requirement. If the amount you’re able to put down on a home is limited, the lender’s requirements based on your financial situation can make or break your purchasing power. Cost and fees. Some are less than transparent. Comb through the fine print and ask about all fees involved. Choosing a mortgage lender is about more than just getting the lowest rate, it’s also about getting the right type of mortgage. Not all lenders offer the same mortgage programs, and others specialize in specific mortgage loan types , making it even more important for you to know which type of mortgage you need. Conventional loans. Fannie mae and freddie mac set the rules for conventional conforming loans with down payments as low as 3%. You can skip the cost of private mortgage insurance (pmi) if you have a 20%