What Type of Loan Should I Get for My Home?

The type of mortgage loan you should get for your home will depend on several factors, including:

  • The costs of the loan, especially compared to your income.

  • Your preferred duration to repay the loan and size of the payments you are willing to make each month.

  • Your capacity to repay the loan in a timely manner.

When you deciding on the size and type of loan to get for your home, remember to work with your family and financial advisor. A mortgage is a significant expenditure and will impose requirements on your family for a long period of time.

Tellus TIP:

Typically, a government-insured loan will have lower rates and require a lower down payment. A conforming loan will be easier to qualify for and obtain. Thus, if you qualify, and if the loan meets your needs, choosing a conforming loan that is part of a government-backed program will often be preferable.