Page 2 - Mortgage Loans in Lake County

Conventional Mortgages
Conventional mortgages are those loans not insured or protected by the government. If you have less than 20% to put down on a conventional loan you will usually be reuired to pay PMI (private mortgage insurance). This insurance protects the lender in case you default on the loan. Please see the end of this article for additional resources regarding conventional loans.

Adjustable Rate Mortgages (ARMs)
Interest rates with an ARM will change periodically based on a particular index. ARMs are usually defined by the length of time before adjustment (1-year, 3-year, etc.) The advantage of an ARM is that you can typically borrow substantially more than with a conventional fixed-rate mortgage where the interest rate stays the same for the entirety of the loan. On the flip side is the chance that interest rates will climb which would result in a higher payment.

Veterans Affairs (VA) Loans
The Department of Veterans Affairs offers home mortgages to military veterans, reservists and those in active duty. These loans are excellent options in that they typically require little or no down payment.

Federal Housing Administration (FHA) Insured Loans
The Federal Housing Administration (FHA) offers many mortgage programs which include low downpayment options. Loans insured by the FHA are available from many of the standard lenders involved with conventional loans. FHA loans usually require the buyer to supply 3% cash as a downpayment.

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