Travis Business Advisors Podcast | TBA Podcast
I’m Slava Davidenko, founder of Travis Business Advisors, ABBA, IBBA and TABB member, Accredited Business Intermediary, Chicago GSB MBA.
I have 35 years of leadership experience in investing, operations and high-stakes deals. I’m building an Austin advisory for small and medium sized businesses.
On this channel, I share insights for Austin business owners planning an exit and buyers, planning to buy business located in Austin - whether five years away from the deal or just three months.
If you own a car wash, dental or veterinary practice, private school or education center, self-storage, or senior care - selling isn’t simple. Valuation, structure, taxes, transition, real estate, growth story - every decision affects your outcome.
Most brokers oversimplify. I don’t.
DISCLAIMER: This podcast is for educational content only. It does not constitute legal, tax, financial, or investment advice. Always consult qualified professionals. Individual results vary significantly.
You can check out our website for more information:
travisbusinessadvisors.com
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DISCLAIMER: This content is for educational purposes only and does not constitute legal, tax, financial, or investment advice. Always consult qualified professionals. Individual results vary significantly.
Travis Business Advisors Podcast | TBA Podcast
'I Wish I Knew This Earlier': 6 Loan Types You Should Know About
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Ever felt overwhelmed by mortgage terminology and loan options? You're not alone. In this comprehensive exploration of residential real estate loans, we cut through the complexity to help you understand the financing tools that can make or break your homeownership journey.
We start by examining the fundamental choice between fixed-rate and adjustable-rate mortgages, revealing why fixed-rate loans dominate the market despite occasional surges in ARM popularity. Did you know ARM mortgages plummeted from nearly 50% market share in 2005 to just 2% after the 2008 housing crisis? We explore why this happened and when each option makes strategic sense for different homebuyers.
The conversation flows through conventional loans (the backbone of mortgage lending at 77% of new home purchases), government-backed options like FHA, VA, and USDA loans (making homeownership accessible to those who might otherwise be excluded), and jumbo loans for high-value properties. Each loan type serves specific needs and borrower profiles, and we carefully outline who benefits most from each option.
For existing homeowners, we decode the differences between home equity loans and lines of credit (HELOCs), explaining why HELOC balances have grown for three consecutive years as homeowners seek to leverage their equity without sacrificing their advantageous primary mortgage rates. Senior homeowners will appreciate our breakdown of reverse mortgages - how they work, who they benefit, and important considerations before moving forward.
Whether you're a first-time buyer, looking to move up, downsizing, or wanting to tap into your home's equity, understanding these financial tools is crucial to making decisions that align with your long-term goals. Forget the jargon and confusion - this episode gives you the knowledge to approach your next real estate transaction with confidence and clarity.
What mortgage questions have been keeping you up at night? Share them with us and subscribe for more financial insights that make complex topics accessible.
🔎 Explore more resources:
📚 Business sale case studies - see how companies were prepared and sold
https://travisbusinessadvisors.com/case-studies
📊 Visual infographics about selling a business - key numbers, timelines, and exit strategies
https://travisbusinessadvisors.com/infographics
🧰 Try useful tools for business owners - valuation insights and preparation resources
https://travisbusinessadvisors.com/tools
🏢 Industries we work with - learn which businesses we help prepare for sale
https://travisbusinessadvisors.com/industries
⚠️ Disclaimer: All scenarios are composite, hypothetical, or modified for confidentiality — no real transactions are depicted. Financial outcomes are illustrative only, not guarantees. This content is educational only and does not constitute legal, tax, financial, or brokerage advice. No professional-client relationship is created. Consult qualified professionals before making any business decisions.
Okay, so you know how we all get bombarded with all this stuff about real estate loans.
Speaker 2Yeah.
Speaker 1It's a huge part of so many people's lives, right? Yes, whether you're like buying your first place, or moving, or upsizing or downsizing, or just trying to figure out how all of this it's amazing. Home ownership, financial stuff even works.
Speaker 2Yeah.
Speaker 1So we're going on a deep dive today.
Speaker 2Okay.
Speaker 1To really just try to cut through the complexity.
Speaker 2Okay.
Speaker 1And look at all the different types of residential real estate loans.
Speaker 2Yeah.
Speaker 1So what makes each one kind of unique?
Speaker 2Okay.
Speaker 1When do they typically come into play, yep, and who are they a good fit for?
Speaker 2That's right. Understanding these options is so important because it's not just about getting a loan Right. It's about actually making an informed decision that aligns with your goals. Whether you're just starting out or maybe you're looking at, like, how can I use my equity I already have in my home, your sources actually cover a really comprehensive range.
Speaker 1They do.
Speaker 2From the basic mortgages everyone thinks of to some really interesting tools.
Speaker 1Comprehensive range they do From the basic mortgages everyone thinks of.
Speaker 2Yeah To some really interesting tools like home equity lines of credit.
Speaker 1Right.
Speaker 2And even reverse mortgages yeah, for seniors, yeah.
Speaker 1OK. So why don't we just jump right in Right With kind of what feels like the cornerstone for most people?
Speaker 2OK.
Speaker 1Fixed rate versus adjustable rate mortgages. So fixed rate mortgages they seem like the dependable, like workhorse of the home lending world.
Speaker 2They really are Right. The core advantage is that fixed interest rate.
Speaker 1Right.
Speaker 2And monthly payment for the life of the loan.
Speaker 1For the entire loan.
Speaker 2Yeah, usually it's like 15 or 30 years.
Speaker 1Right 15 or 30 years.
Fixed vs. Adjustable Rate Mortgages
Speaker 2That predictability is so helpful for budgeting and, you know, long-term planning.
Speaker 1It really takes a lot of the uncertainty out, doesn't it? Because you lock in that rate. Let's say it's six and a half percent. That's your interest for the next 15 or 30 set.
Speaker 2That sounds perfect for people who plan to stay in their home for a while.
Speaker 1Exactly If you're putting down roots.
Speaker 2Yeah.
Speaker 1That's a great option.
Speaker 2Okay, so then on the flip side.
Speaker 1Yeah, the other side of the coin.
Speaker 2We have adjustable rate mortgages.
Speaker 1Adjustable rate mortgages, or RRMs.
Speaker 2RRMs.
Speaker 1Yeah, these start with a fixed rate.
Speaker 2Okay.
Speaker 1For an initial period. Okay, maybe For an initial period Okay, maybe like five, seven or 10 years.
Speaker 2Okay.
Speaker 1But after that the rate starts to adjust based on what's happening in the market. So, you might see like a 51 ARM.
Speaker 2A 5-1. Yeah where it's fixed for the first five years and then it adjusts every year after that. So the initial draw then is that you could get a lower interest rate.
Speaker 1Potentially a lower rate.
Speaker 2Yeah.
Speaker 1And that means lower payments.
Speaker 2For that initial period Right in that fixed period exactly. Yeah, this seems like it would be appealing.
Speaker 1Yeah.
Speaker 2If interest rates in general are really high.
Speaker 1Yeah, that's one situation where it could be attractive.
Speaker 2Or maybe if you don't think you're going to be in the house that long, Right, right, you're only going to go down, okay, well, I found this really interesting. Okay.
Speaker 1Back in 2005,. Arms made up almost half Wow Of all the mortgages.
Speaker 2Almost half.
Speaker 1But then after the 2008 crash.
Speaker 2Oh yeah.
Speaker 1Their share plummeted to like 2%.
Speaker 2That's a huge shift.
Speaker 1That's a big difference.
Speaker 2Yeah, it shows how people's preferences changed.
Speaker 1Yeah.
Speaker 2I think that shows that there's some risks with ARMs.
Speaker 1Yeah.
Speaker 2Especially if rates go up unexpectedly.
Speaker 1Yeah, then your payments go up.
Speaker 2Yeah, and people might not be able to afford that Right, but, like your sources point out, yeah. That initial lower rate can still be a good option in certain situations.
Speaker 1Yeah.
Speaker 2It depends on how much risk you're comfortable with.
Speaker 1That's a good way to put it.
Speaker 2And how you think about the trade-offs between saving money now versus having that certainty later.
Speaker 1Right.
Speaker 2Especially in a crazy economy Right Like we've been having.
Speaker 1So if we think about who each type is good for, Okay. It sounds like fixed rate is better for people who just want to know what their payment is.
Speaker 2If you really value stability.
Speaker 1Yeah, and long-term security.
Speaker 2Yeah, if you want to know exactly what your payment's going to be for the next 15 or 30 years, then a fixed rate is probably the best choice.
Speaker 1Okay, so when would an ARM?
Speaker 2Yeah, when would an ARM be a good choice, be a better fit? So your sources suggest a couple situations.
Speaker 1Okay. So when would an ARM yeah, when would an ARM be a good choice, be a better fit?
Speaker 2So your sources suggest a couple of situations. Okay, maybe, if you're planning on moving soon. Okay, like before that fixed rate period ends, right? Or if you're betting that rates are going to go down.
Speaker 1Okay.
Speaker 2And you're going to refinance before they start adjusting.
Speaker 1Interesting.
Speaker 2We actually saw a little bump in ARM popularity in 2022 and 2023.
Speaker 1Why was that?
Speaker 2Well, 30-year fixed rates went way up like from around 3% to over 7%.
Speaker 1Wow.
Speaker 2So some people wanted that lower initial payment Right, even though they knew it could change later.
Speaker 1Even though it was risky.
Speaker 2Exactly, but even then, fixed rate loans are still way more common Still the most popular.
Speaker 1Yeah, most people choose. Fixed rate. Loans are still way more common, still the most popular.
Speaker 2Yeah, most people choose fixed rate.
Speaker 1Okay, that makes sense.
Speaker 2Yeah.
Speaker 1So that's a good overview of fixed versus adjustable Right. So let's move on to conventional home loans. Okay, the sources describe these as like your standard mortgage.
Speaker 2Your basic mortgage.
Speaker 1Yeah, that doesn't have any kind of insurance backing.
Speaker 2Right, no government backing From the government. Yeah.
Speaker 1And the most common type of this is a conforming loan.
Speaker 2Yes, a conforming loan.
Speaker 1So what is that?
Speaker 2So conforming loans follow rules set by Fannie Mae and Freddie Mac.
Speaker 1Oh OK.
Conventional Home Loans Explained
Speaker 2They're these big government-sponsored enterprises. Ok, and one of those rules is a limit on the size of the loan. Ok, and one of those rules is a limit on the size of the loan OK so for 2025,. That limit is around eight hundred and six thousand five hundred dollars. Ok For a single family home in most areas. Ok, but it could be higher in expensive places.
Speaker 1OK, like where.
Speaker 2Like San Francisco or New York. Ok, it can go up to one point two, one million.
Speaker 1Wow, that's still a limit.
Speaker 2Right, it's a high limit.
Speaker 1Yeah.
Speaker 2But it's still a limit.
Speaker 1So what happens if you?
Speaker 2Then you get a jumbo loan. Jumbo loan We'll talk about those later. Okay, but basically this whole conforming loan system.
Speaker 1Yeah.
Speaker 2It lets Fannie and Freddie buy these loans from lenders.
Speaker 1Oh.
Speaker 2Which helps make more money available for mortgages. I see Across the whole country.
Speaker 1So for a conventional loan.
Speaker 2Yeah.
Speaker 1What are the requirements usually?
Speaker 2Usually you need a good credit score.
Speaker 1Like what's good.
Speaker 2Mid credit score.
Speaker 1Like what's good, mid 600s or higher.
Speaker 2Okay, and a down payment of at least three to five percent. Three to five, yeah. But a lot of people put down 20 percent.
Speaker 1Why is?
Speaker 2that Well, if you put down 20 percent.
Speaker 1Yeah.
Speaker 2You don't have to pay PMI.
Speaker 1PMI.
Speaker 2Yeah, private mortgage insurance.
Speaker 1Oh right, that's that extra cost.
Speaker 2Exactly, it can add up.
Speaker 1So is there an advantage to conventional loans?
Speaker 2Yeah, one big advantage is that you can get a lower interest rate.
Speaker 1Oh OK.
Speaker 2If you have good credit. So if you're a good borrower, Right Lenders see you as less risky.
Speaker 1Yeah.
Speaker 2And that means better rates.
Speaker 1Yeah.
Speaker 2Conventional loans are actually really popular.
Speaker 1How popular.
Speaker 2In late 2023, like 77 percent of new homes.
Speaker 1Wow.
Speaker 2Were financed with conventional loans.
Speaker 1That's most of them.
Speaker 2It's the most common type.
Speaker 1Okay, so who should get a conventional loan?
Speaker 2Anyone with good credit and some money for a down payment.
Speaker 1Okay.
Speaker 2Whether it's your first home or your fifth.
Speaker 1Yeah.
Speaker 2Unless you need a government program, right, or you're buying something super expensive Okay, that needs a jumbo loan, right. Then conventional is probably a good fit.
Speaker 1OK, let's talk about those government backed loans.
Speaker 2OK, those are interesting.
Speaker 1Yeah, so we have the FHA.
Speaker 2The VA.
Speaker 1VA, the UA and the USDA.
Speaker 2These seem to be for people who, yeah, don't quite fit the mold.
Speaker 1They are. They're designed to help people, yeah, who might not qualify for a conventional loan.
Speaker 2OK.
Speaker 1So they have lower down payments or easier rules, okay, the government agencies.
Speaker 2Okay.
Speaker 1Like FHA, va and USDA.
Speaker 2They basically insure or guarantee these loans.
Speaker 1Okay.
Government-Backed Loan Options
Speaker 2So the lenders aren't taking as much risk.
Speaker 1I see.
Speaker 2And that means more people can qualify.
Speaker 1That makes sense.
Speaker 2Yeah.
Speaker 1So let's start with FHA FHA loans. What are the key things there?
Speaker 2FHA loans are good if you have a lower credit score.
Speaker 1Okay.
Speaker 2Or you haven't saved up a lot for a down payment.
Speaker 1Okay.
Speaker 2You could put down as little as three and a half percent Okay With a credit score of 580 or higher.
Speaker 1That's a lot lower.
Speaker 2It is. It's a lot more accessible. Okay, but there's a catch.
Speaker 1Okay, what's the catch?
Speaker 2You have to pay mortgage insurance premiums.
Speaker 1Oh, right, like PMI.
Speaker 2Yeah, it's similar to PMI.
Speaker 1Okay.
Speaker 2But it's a little different.
Speaker 1How is it different?
Speaker 2The structure and how long you pay it can be different.
Speaker 1Okay.
Speaker 2But the idea is the same.
Speaker 1To protect the lender.
Speaker 2Right, because you're putting down less money up front.
Speaker 1Okay.
Speaker 2So there's more risk for them. Okay, but FHA loans are pretty popular.
Speaker 1Yeah.
Speaker 2Over 753,000 of them were made in 2023.
Speaker 1Wow.
Speaker 2And there are limits on how much you can borrow, and those limits depend on where you live.
Speaker 1Okay.
Speaker 2So you have to check those limits.
Speaker 1So it's more accessible. Yeah, but there's mortgage insurance, right, okay. What about VA loans?
Speaker 2VA loans are a fantastic benefit. For who For veterans and active duty military.
Speaker 1Okay.
Speaker 2And some surviving spouses. Okay, one great thing is you can get a zero down payment.
Speaker 1You don't have to put any money down.
Speaker 2Nope, not necessarily Wow, and there's no ongoing PMI.
Speaker 1That's a big deal.
Speaker 2It is. It can save you a lot of money. Yeah, and the rates are usually really low. Okay, and they're a little more flexible on credit scores.
Speaker 1Like what kind of score?
Speaker 2You can sometimes qualify with a score as low as 620.
Speaker 1That's pretty low.
Speaker 2It is. It's a lot more accessible. There might be an upfront fee. It's called the VA funding fee, but it can vary, but overall it's an amazing program. In 2023, there were about 377,000 VA purchase loans made.
Speaker 1Wow, so people are definitely using them.
Speaker 2Yeah, it's a popular benefit, but you can only use them for your primary residence.
Speaker 1Oh, okay, not a second home.
Speaker 2Not a second home or an investment property.
Speaker 1Okay.
Speaker 2It's for your main home.
Speaker 1Okay, so you have to live there.
Speaker 2Yeah, you have to live there. Okay, and to get a VA loan you need a certificate of eligibility from the VA.
Speaker 1The Department of Veterans Affairs.
Speaker 2Right, so you have to get that first.
Speaker 1And then we have USDA loans.
Speaker 2USDA loans.
Speaker 1This is one that I think a lot of people don't know as much about.
Speaker 2They're specifically for rural and suburban areas. They help low to moderate income buyers and they also offer zero down payment.
Speaker 1No down payment.
Speaker 2Like the VA loans.
Speaker 1Okay.
Speaker 2But you have to meet certain income limits.
Speaker 1Okay.
Speaker 2And the house has to be in an eligible area.
Speaker 1Okay.
Speaker 2So you can't buy just any house with the USDA loan.
Speaker 1So there are some restrictions.
Speaker 2Yeah, there are some restrictions, but the rates are usually pretty good. Okay, so it's a good option if you qualify.
Speaker 1So it sounds like if you're a first-time homebuyer, right, or you have certain circumstances like you're a veteran or you want to live in a rural area? Yeah, these government-backed loans are a really great option.
Speaker 2Yeah, they help a lot of people.
Speaker 1They open up homeownership to more people.
Speaker 2Exactly.
Speaker 1Okay, so now let's talk about the more expensive houses.
Speaker 2The expensive houses.
Speaker 1Yeah, the ones that cost more than that limit.
Speaker 2Right more than that conforming loan limit.
Speaker 1Yeah, that $806,500.
Speaker 2Right in most areas.
Speaker 1So that's where jumbo loans come in.
Speaker 2That's right. Jumbo loans.
Speaker 1Okay, so why are they different?
Speaker 2Well, because they're bigger than that limit.
Speaker 1Yeah.
Speaker 2Fannie and Freddie can't buy them. Oh, okay, so the lender is taking on more risk.
Speaker 1Makes sense. So that means they have stricter rules for borrowers.
Speaker 2It can be harder Okay. They can be fixed or adjustable Okay, and they usually have 30-year terms Okay. But you usually need really good credit.
Speaker 1Like how good.
Jumbo Loans for Expensive Properties
Speaker 2A score of 700 or higher, wow, and a big down payment.
Speaker 1Like how big.
Speaker 2Usually 15 to 20% or more.
Speaker 1Wow so a lot more.
Speaker 2Yeah, a lot more.
Speaker 1So this isn't for like first time home buyers.
Speaker 2Not usually.
Speaker 1Yeah.
Speaker 2Jumbo loans are more common in expensive areas. Okay, like those big cities we talked about. Right, san Francisco, new York, yeah Like those big cities we talked about Right San Francisco, New York yeah. Where even a small house can cost more than that limit.
Speaker 1So if you're buying in those areas, you just need to know about jumbo loans.
Speaker 2You have to understand them.
Speaker 1Yeah.
Speaker 2Because you might need one.
Speaker 1Okay, so now let's switch gears a bit and talk about people who already own a home.
Speaker 2Okay, homeowners. Yeah, and they've built up equity Right. They have some value in their home.
Speaker 1Yeah, so the sources talk about ways to tap into that equity.
Speaker 2To war against it.
Speaker 1Yeah, like HELOCs and home equity loans.
Speaker 2HELOCs and home equity loans. Okay, these are good tools. Yeah, if you need money.
Speaker 1Okay.
Speaker 2And you could use your house as collateral.
Speaker 1Like a second mortgage.
Home Equity Options for Homeowners
Speaker 2Yeah, basically a second mortgage. Yeah, basically a second mortgage.
Speaker 1Okay, so let's start with home equity loans.
Speaker 2Okay, home equity loans.
Speaker 1What are those?
Speaker 2So with a home equity loan you get a lump sum of money up front. Okay, All at once.
Speaker 1Okay.
Speaker 2And then you pay it back. Okay, over a set period of time, okay, with a fixed interest rate. So you know exactly what you're paying.
Speaker 1Yeah.
Speaker 2Every month.
Speaker 1So that's good for what?
Speaker 2That's good for big expenses, okay, where you want to know exactly what your payment is.
Speaker 1Like a renovation.
Speaker 2Yeah, like a big home renovation.
Speaker 1Okay.
Speaker 2Or maybe a medical bill.
Speaker 1So H-E-L-O-C is different.
Speaker 2E-L-O-C is a little different. How so?
Speaker 1It's more like a credit card.
Speaker 2Oh, up to that limit over a certain period, usually about 10 years. That's called the draw period.
Speaker 1The draw period.
Speaker 2Yeah, and the interest rate's usually variable.
Speaker 1Meaning it changes.
Speaker 2Yeah, it can go up or down.
Speaker 1Based on what?
Speaker 2Based on market conditions and you only pay interest on the amount you've actually borrowed. So that's good for it's good for ongoing expenses or things you can't predict, like home repairs or medical bills or maybe college tuition.
Speaker 1So it's more flexible. Yeah, it's more flexible Than a home equity loan.
Speaker 2Than a home equity loan.
Speaker 1Okay.
Speaker 2And ELLs are getting more popular Really, yeah, because a lot of people have a lot of equity in their homes.
Speaker 1Right, because houses have gone up in value.
Speaker 2Exactly, and they have low interest rates on their first mortgage.
Speaker 1Right, so they don't want to refinance.
Speaker 2Right, they want to keep that low rate. Yeah, so a HLLC lets them access cash.
Speaker 1Without refinancing, without refinancing. Okay.
Speaker 2And your sources say that in 2024,.
Speaker 1HLLC balances grew by about 7%. Wow, and that's the third year in a row they've gone up, so people are using them.
Speaker 2More People are using them more.
Speaker 1But there's a big warning here, right.
Speaker 2Yeah, a big warning.
Speaker 1About both of these options.
Speaker 2Both AGLOs and home equity loans.
Speaker 1Yeah.
Speaker 2They're secured by your home, meaning if you don't pay, yeah, you could lose your house.
Speaker 1Oh, wow.
Speaker 2Yeah, so you have to be careful.
Speaker 1So use the money wisely.
Speaker 2Use it wisely, don't go crazy, don't go crazy. Okay, so let's talk about reverse mortgages now Okay. Reverse mortgages. This is for. These are for seniors. Seniors People 62 and older.
Speaker 1Okay, they let you access your equity, yeah, without making monthly payments, oh wow. So how does that work?
Speaker 2Basically, you're converting your equity.
Speaker 1Yeah.
Speaker 2Into cash.
Speaker 1Okay.
Speaker 2You can get the money in a few ways. Okay, a lump sum, okay, monthly payments Okay, or a line of credit.
Speaker 1Oh, wow.
Speaker 2So you have some choices.
Speaker 1And then what about repayment?
Reverse Mortgages for Seniors
Speaker 2You don't usually have to repay, okay, until you sell the house Okay, or move out permanently Okay, or pass away, I see and usually the loan is paid back.
Speaker 1Yeah.
Speaker 2From the sale of the house. Okay, so this is for people who, this is for people who need extra money in retirement but they want to stay in their home. They have a lot of equity, but maybe not a lot of cash.
Speaker 1So they're house rich but cash poor. Exactly Okay, but they still have to pay.
Speaker 2Yeah, they still have to pay their property taxes and their homeowner's insurance and keep the house in good shape.
Speaker 1Otherwise they.
Speaker 2Otherwise they could default on the loan Okay and potentially lose their home.
Speaker 1So there's still some responsibility.
Speaker 2Yeah, there's still some responsibility.
Speaker 1Okay, so reverse mortgages were really popular.
Speaker 2Yeah, they were really popular when interest rates were low. Okay, like in 2022, there was a record number of HECMs.
Speaker 1What's a HECM A?
Speaker 2HECM is a home equity conversion mortgage. Okay, it's the most common type of reverse mortgage.
Speaker 1Okay.
Speaker 2And it's insured by the FHA.
Speaker 1Okay.
Speaker 2So it's a government program, okay, but when rates went up in 2023, they weren't as popular.
Speaker 1So what are some things to think about?
Speaker 2Well, if you're thinking about a reverse mortgage, you need to understand that it reduces your equity.
Speaker 1Okay.
Speaker 2So your heirs will get less. And there are fees.
Speaker 1Like, what kind of fees?
Speaker 2Like origination fees and mortgage insurance premiums Okay, and servicing fees.
Speaker 1So those can add up.
Speaker 2They can add up.
Speaker 1Okay.
Speaker 2And if you're getting a short ECM, you have to talk to a counselor. Really, yeah, it's required. Why is that? To make sure you understand the loan before you sign anything.
Speaker 1That's a good idea.
Speaker 2It protects seniors.
Speaker 1So we've covered a lot today.
Speaker 2We have.
Speaker 1From fixed rate and adjustable rate mortgages.
Speaker 2Yeah.
Speaker 1To conventional and government backed loans and jumbo loans, and HEOCs and home equity loans.
Speaker 2And reverse mortgages.
Speaker 1It's amazing how many options there are.
Speaker 2It is. There's a lot to consider.
Speaker 1Yeah, it seems like the best choice. Yeah, it really depends on your situation.
Speaker 2It does, and your goals your goals and your circumstances.
Speaker 1Yeah. So just to recap, we talked about fixed rate loans.
Speaker 2Yeah.
Speaker 1Which have that stable payment.
Speaker 2Stable, predictable payments and then RMs. Where?
Speaker 1the rate can adjust, yeah, and then conventional loans.
Speaker 2Conventional.
Speaker 1Which are common but have stricter rules.
Speaker 2Right. Usually need good credit.
Speaker 1And government-backed loans.
Speaker 2Government-backed loans.
Speaker 1Which can be more accessible.
Final Thoughts and Key Takeaways
Speaker 2Right Lower down payments yeah, lower credit scores and then jumbo loans. For those expensive houses.
Speaker 1For really expensive houses.
Speaker 2Yeah.
Speaker 1And who loaf sees.
Speaker 2You loaf sees which are flexible.
Speaker 1Yeah, like a credit card for your house.
Speaker 2And home equity loans.
Speaker 1Home equity loans.
Speaker 2Which give you a lump sum.
Speaker 1Lump sum up front.
Speaker 2And then reverse mortgage For seniors, for seniors.
Speaker 1To access their equity.
Speaker 2Yeah, so many options.
Speaker 1It's a lot to take in.
Speaker 2So what's the takeaway for our listener?
Speaker 1The takeaway is think about your long-term goals. Okay, don't just think about buying a house today. Right, think about how this loan is going to affect you for years to come.
Speaker 2Right.
Speaker 1How is it going to shape your financial future and your relationship with your home?
Speaker 2So really do your research. Yeah, look into the details of do your research. Yeah, look into the details of each loan type.
Speaker 1Yeah.
Speaker 2And figure out which one is the best fit for you.
Speaker 1That's great advice. Thank you so much for joining us on this deep dive.
Speaker 2It was my pleasure.
Speaker 1Yeah, it's been really informative.
Speaker 2I'm glad.
Speaker 1So I encourage all of you listeners out there to think about these things.
Speaker 2Think about your goals.
Speaker 1Really do your research and find the best loan for you.
Speaker 2Absolutely.
Speaker 1Thanks for listening to the Deep Dive.
Speaker 2Thanks everyone.
