I'm looking to buy my first home.  Can you tell me about the different types of mortgages?
I'm looking to buy my first home.  Can you tell me about the different types of mortgages?
user
Sure, there are basically two kinds: Conventional and FHA.  A conventional mortgage has a fixed interest rate, and there's no protection from market fluctuations.  FHA is government backed, so you get a guarantee on your interest rate.  But, the requirements are more strict and it's hard to qualify, unless you have a lot of income.
assistant
Does an FHA loan have a variable interest rate?
user
Yes, for the last several years they've switched to a 5 year variable rate mortgage.
assistant
And what exactly is a variable rate mortgage?
user