There is a wide range of home loans available in Chatham, IL seeking to meet the needs of different home buyers. If you are thinking of taking a home loan, you need to know that the home loans Chatham IL can range from loans that you can get for the construction of a home to those that are conventional. All these home loans are usually secured against the home.
There are different types of home loans Chatham, IL. It is important for you to know the types of loans that are available to you. This will help you choose the loan that is suitable for your needs. The different types of loans are:
- Adjustable loans (ARM)
These loans provide you with low payment and rates at the beginning, which can be a period of 3 -5 years. However, after this period is over, the ARM disappears and you start paying a fixed rate depending on the prevailing rate in the market.
- Fixed rate loans
These home loans Chatham, IL are the most popular. You get to select the amount to borrow and the loan needs to be repaid within 30 years, which means you repay it comfortably. This, however, does not include home insurance, taxes or mortgage insurance, which might affect the monthly payment.
- Veteran Administration Loans (VA) and Federal Housing Authority (FHA)
These are fixed, as well as adjustable rate loans that the government secures to a certain limit. The government insures these loans, which is why lenders like them. Qualifying for a loan that is backed by the government could help you to get a lower rate, a loan that you could not get without the government system and a lower down payment.
- Other loans
These are such as home equity loans, construction loans, no down payment loans, home equity line of credit, cash out and refinance loans, investor loans, second home loans, sub-prime loans, reverse mortgages, debt consolidation loans and refinancing loans among many others.
Before taking any home loans Chatham, IL, you need to know the loans that will work well for you. In addition, you can get useful information from your potential lender, which will help you make the right decision on the home loan that is best for you.
