Mortgage Basics: Finding the Right Home Loan for You

[MUSIC PLAYING]

(SPEECH)

How do I pick the right mortgage? Well, start by looking at your options.

(DESCRIPTION)

An eye appears. A house and folders are shown in the eye.

(SPEECH)

First, there are fixed-rate mortgage loans. With a required minimum down payment, these loans lock you into a long-term interest rate for the entire length of the loan, and that might be appealing if you're looking to settle down.

(DESCRIPTION)

A lock is hung on a symbol. The words, “REQUIRED DOWN PAYMENT”, appear out of the folder. Roots grow down from house.

(SPEECH)

Or adjustable-rate mortgage loans-- these loans often start with a lower interest rate than a fixed-rate mortgage at first. But the interest rate will change after an initial fixed-rate period.

(DESCRIPTION)

A balloon tied to a lock floats along the screen.

(SPEECH)

The low initial interest rate could work well if you plan to relocate or make improvements and resell.

(DESCRIPTION)

The balloon floats out of frame. The house expands as a car is driven up next to it.

(SPEECH)

There's also FHA mortgage loans. These government-backed loans give you flexibility with a low down payment and the stability of a fixed rate.

(DESCRIPTION)

A lock and text float out of an open folder.

(SPEECH)

Though they require an additional monthly mortgage insurance premium, they may offer homebuyers with an easier qualification process.

(DESCRIPTION)

A dollar bill appears on the side of a sheet of paper. The folder moves along a conveyer belt.

(SPEECH)

Last, VA mortgage loans-- if you or your spouse is in the military or a veteran, these loans may be the best choice.

(DESCRIPTION)

A key unlocks a new screen showing a medal. A house appears.

(SPEECH)

With options for fixed- or adjustable-rate mortgages, these loans typically have low interest rates and low to no down payment options.

(DESCRIPTION)

A padlock labeled percent tied to a balloon floats along the screen. A stack of dollar bills is drug across the screen.

(SPEECH)

There are more mortgage loan programs. But with these four and the help of your loan officer, you can start to compare and see what might be best for you.

(DESCRIPTION)

Four folders appear and open with various loan options. Logo, U.S. Bank. Text, Equal Housing Lender Disclaimer Message.