A VA mortgage is a home loan with no down payment requirement insured by the Veterans Administration (VA) to protect lenders against borrowers who default.
Only veterans are eligible for such loans. And insurance premiums are paid by borrowers.
As a gesture of appreciation for ex-servicemen and women who have contributed to the protection of the nation, veterans have the privilege of having these types of loans exclusive to them.
A fixed rate mortgage (FRM) is a home loan with an interest rate that remains the same through out the term of the loan.
This means that without the complexity of ARMs and hybrids, a borrower can have a very clear picture of payments over the entire life of the loan by just having a few variables.
The compounding frequency would show the number of times the accumulated interest is capitalized or paid out each year.
An FHA mortgage is a housing loan where the lender is insured from losses by the Federal Housing Administration (FHA).
What is the Federal Housing Administration
The objective of FHA is to encourage lenders to underwrite loans which they would otherwise not make due to the perceived risks involved.
The interbank rate is the interest rate at which banks loan to each other to meet short term liquidity needs.
This is an essential lending marketplace for lenders as they need to constantly meet requirements placed on them by regulators regarding their cash reserve ratio (reserve requirements).
This market place is also a huge reason why banks never seem to run out of funds to loan to borrowers. They can basically stock up on inventory here.