Even
if you have a general idea of the kind of property you want and how much
you want to spend, the rates, details, and guidelines are interlinked
in a complex web. A slight change in your plans can shift the loans available
to you, or which loan becomes more desirable. And even if your plans don't
shift, loan guidelines shift often, and interest rates shift at least
daily, which is why we depict the loan variables as frogs! The lender
or broker can explain the basic types of loan: fixed, adjustable (ARM),
or hybrid (start fixed and rolling into adjustable, or starting adjustable
and rolling into fixed). Loans are further divided into conventional loans
and government loans (VA, FHA) depending on the source of the money, and
between conforming and jumbo loans depending on the loan amount.
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