A home loan can help you own your dream home

Owning your dream home need not just be a dream. You can own it with a home loan offered by any number of financial institutions to help meet the shortfall between the purchase price of the home and the down payment that you provide.

The two types of home loans or mortgages that you need to know are:

Fixed rate mortgage: Home loans of this type carry a fixed rate of interest throughout the term of the loan. Your monthly payments remain constant making budgeting easier.
Adjustable rate mortgage (ARM): In this type of mortgage, you monthly payments change with each change in the interest rate. ARMs have a lower interest rate than fixed rate loans, thus, qualifying you for a larger amount.

Tips for obtaining home loans