Some lenders may be more restrictive. Types of Mortgages Frequently mortgages are described by the type of insurance they carry. Private companies offer mortgage insurance too. Conventional loan is the name given to non-government insured loans. The interest rate is thel ender's charge for your use of the funds.
Lenders charge a rate based on their current cost of funds.
When comparing lenders consider the rate, the term, and points. The most common type of mortgage currently is a 30-year fixed interest rate mortgage insured by the Federal government. There are many other kinds. If you are training in a career that pays more money after training is completed, you might choose a lower payment to get started in your home, expecting to have the house payment increase in the future. Balloon Mortgages have low monthly payments, but require re-financing or pay off at the end of the initial term, sometime three years.