As a home buyer, we need to look for the best option available on how we can get the key to the door of our most coveted dream house. And before we embark into this exciting journey of finally owning a house, we have to do a research to find the perfect way on how we can realize this dream.

Garden in Cosmos
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The most common, readily available and easy to understand way is of course the conventional way which usually requires just 10% down payment and is also considered as the most reliable and is offered by most lending institutions like credit unions, banks and real estate financing companies.

The most sought after conventional financing is the fixed rate mortgage wherein you already know how much you’ll be paying for every month and these payments are made over a long period of time. This type of home financing is perfect for people with a steady income.

However, some buyers who are willing to take chances and would usually opt for the variable rate mortgage. The buyer’s payment would vary depending on the interest rate in the market with the possibility of having a low monthly payment and a higher monthly payment in the next month. But each lending institution offers different options and it would be wise that before you sign any papers with a lender you should do your homework first by looking for the best offer.

But other than what was mentioned above about the difference between a fixed rate and variable mortgage is that in a fixed rate mortgage, there is what is called a balloon mortgage that usually requires the buyer to pay the full amount in a number of years usually between 2 to 5 years and buyers at this point oftentimes apply for a refinancing loan.

Lastly, there is the two-step loan or best called as the “game of chance”. Buyers who plan to stay for just a few years in their purchased home would opt for this loan. This loan offers a low interest rate but with unpredictability. At one point the rate increases sky-high or it will decrease.

Georges Kfoury is the founder and Chief Executive Officer of Leaderscorp Financial Inc. headquartered in Rancho Cucamonga, CA, a leading provider of mortgage financing dedicated towards providing affordable home loans. He founded the company way back 2003 from a ground level, without having the mortgage background. In spite of this, he was able to immediately take the company a level of generating annual income ranging from 8 to 10 million dollars.

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