Types of mortgages

Home Loan Options

Mortgages are not one-size-fits-all. Instead, there are various types to match different lending needs. Deciding which type is best for you depends on several factors like the length of time you expect to own your home, the amount of money available for a down payment and your cash flow.

To understand what type may be right for you, here are the most common mortgage types offered by KeyBank, along with their unique features. Once you're ready to buy, we can help you find the right type of home loan to meet your needs.

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KeyBank Mortgage

Fixed rate mortgages

Who is a fixed rate mortgage good for: Those who plan to stay in their homes for a longer period of time

  • Predetermined payment
  • Rate remains the same for the term of the loan, regardless of current market interest rates, plus allows for easier budgeting
  • Mortgage type is simple to understand
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Adjustable rate mortgage (ARM)

Who an adjustable rate mortgage is good for: An ARM is suited to those who may want to sell or refinance early and can afford to make larger monthly payments

  • Interest rate adjusts periodically to reflect market condition within a predetermined time frame. There may not be a cap on interest rate increases
  • Initial period offers a lower rate. At the end of the initial period, the interest rate and monthly payments may increase
  • Initial rate can be locked in for different time periods
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Federal Housing Authority (FHA) loan

Who an FHA is good for: A Federal Housing Authority loan is for those who do not have the funds for a 20% down payment

  • Insured through the Federal Housing Administration (FHA)
  • Some features may offer low down payment requirements and use of gift funds for down payment and/or closing costs
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Veteran Affairs (VA) loan

Who a VA loan is good for: Veteran Affairs loans are for qualified veterans and reservists

  • VA Home Loans are provided by private lenders, such as banks and mortgage companies. VA guarantees a portion of the loan, enabling the lender to provide you with more favorable terms
  • These loans offer competitive rates and 100% loan-to-value with no Mortgage Insurance and no down payment required in most cases*
  • *Unless required by the lender, or if the purchase price is more than the reasonable value of the property as determined by VA, or the loan is made with graduated payment features
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Jumbo loan

Who a Jumbo loan is good for: A Jumbo loan is for those looking for a higher-priced home

  • This type of home loan is above the set limits of the government-backed agencies Fannie Mae and Freddie Mac
  • Important option for those living in expensive housing markets
  • Available on primary homes and secondary or vacation homes

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