What are the different types of home loans available?

In New York, there are several types of home loans available to homeowners. The most common type of loan offered is a fixed-rate mortgage, in which the interest rate and monthly payments remain the same for the term of the loan. Adjustable-rate mortgages are also offered and typically have lower initial interest rates that adjust periodically. Home equity loans are also available and feature a fixed rate and are secured by equity in the home. Balloon loans have a fixed rate and a low initial payment, but the loan balance must be paid in full after a predetermined period of time. FHA loans are government-insured loans that typically offer lower rates and fees than traditional home mortgages. VA loans are also available to qualified veterans and active-duty military personnel, and usually require no down payment. Finally, there are USDA loans, which are offered by the United States Department of Agriculture, and are typically used to finance homes in rural areas. Each type of home loan offers its own unique benefits, so it is important to consult with a residential real estate lawyer to determine the best option for you.

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What are the different types of home loans available?

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