Types of Loans



Buying a home may be the largest purchase you will ever make. You know what you can afford, you have found the house of your dreams, and now its time to apply for a mortgage loan.  Be sure to shop around. The most common types of loans are Conventional and FHA and VA government insured loans.  There usually is a loan to meet the needs of almost any buyer.  A conventional mortgage is typically a 30 year loan with a fixed or adjustable rate homeloanthat requires a down payment of 10 to 20 percent.  An FHA mortgage is a loan made through a bank but insured by the Federal Housing Administration and requires a small down payment of 3 percent.  A VA mortgage is also provided by a bank but insured by the Veterans Administration and is only available to current or former members of the US armed forces.

While these are the most common mortgage loans, its important to work with your lender to understand all options and select a mortgage that best suits your needs.


If you apply for financial aid, you may be offered loans as part of your school’s financial aid offer. A loan is money yoeducation-costsu borrow and must pay back with interest.

If you decide to take out a loan, make sure you understand who is making the loan and the terms and conditions of the loan. Student loans can come from the federal government or from private sources such as a bank or financial institution. Loans made by the federal government, called federal student loans, usually offer borrowers lower interest rates and have more flexible repayment options than loans from banks or other private sources.



Whether you’re in the market for a new auto loan or want to refinance your current one, first take time to review your auto financing options. Your new car loan will build your credit rating as you make on-time payments. Getting a loan for a car also contributes to your credit mix and can improve your credit score. Refinancing your auto loan by negotiating with new lenders and leveraging your credit rating can reduce your interest rate and save money.AUTOLOANS

The single most important thing you can do to save money on an auto loan is to shop for the best auto loan rate before you set foot in a dealership. In general, new-car loan rates are better than used-car rates. Usually, only new cars qualify for zero-percent financing, though some automakers occasionally push certified pre-owned stock with zero-percent offers. In general, the older the car is, the higher the interest rate is. Sign up for the shortest term length you can afford to keep your total interest lower; the longer term you have for a car loan, the more you’ll pay in interest.


Most small businesses rely on lenders to provide the capital they need to either open a business or to finance capital improvements. Federal, state and local governments offer a wide range of financing probusinessopengrams to help small businesses start and grow their operations. These programs include low-interest loans, venture capital, and scientific and economic development grants.