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Types of Loans

Thirty-Year Fixed Rate Mortgage
The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.

Fifteen-Year Fixed Rate Mortgage
This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate—and you'll own your home twice as fast. The disadvantage is that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment, since the difference in interest rates isn't that great.

MN Housing(MHFA) 
Minnesota Housing offers products and services to help Minnesotans buy and fix up their homes.   Their first time home buyer program offers low interest rates to low and moderate income borrowers.  They also have programs for non-first time homebuyers, down payment assistance and home improvement loans.   Click here for more information www.mnhousing.gov

USDA Rural Development
This program assists approved lenders in providing low and moderate income households the opportunity to own adequate, modest, decent, safe and sanitary dwelling as their primary residence in eligible rural areas.  Eligible applicants can buy a house with zero down payment.    

Federal Housing Administration(FHA)
An FHA insured loan is another low-down payment option for all eligible home buyers.   There are no income or area restrictions with this program.  Eligible applicants can buy a house with as little as 3.5% down.

Veterans Administration(VA)
A VA loan is a mortgage loan that offers long-term financing to eligible American veterans or their surviving spouses(provided they do not remarry).   Zero down payment required and lower closing costs are a feature of this loan program.

Hybrid ARM (3/1 ARM, 5/1 ARM, 7/1 ARM)
These increasingly popular ARMS—also called 3/1, 5/1 or 7/1—can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example, a "5/1 loan" has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. It's a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.

Adjustable Rate Mortgages (ARM)
When it comes to ARMs there's a basic rule to remember...the longer you ask the lender to charge you a specific rate, the more expensive the loan.

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