Types of Mortgages

A mortgage is a loan specifically designed to help individuals or businesses purchase real estate. It is secured by the property itself, meaning that if the borrower defaults on the loan, the lender has the right to foreclose and sell the property to recover the loan amount.

Adjustable-Rate Mortgage (ARM)

Interest rate varies periodically based on a benchmark interest rate or index.

Interest-Only Mortgage

Borrower pays only the interest for a set period, after which they start paying both principal and interest.

Fixed-Rate Mortgage

Interest rate remains constant throughout the life of the loan.

FHA Loans

Insured by the Federal Housing Administration, designed for low-to-moderate-income borrowers.

VA Loans

Guaranteed by the Department of Veterans Affairs, available to veterans, active-duty service members, and eligible family members.

Jumbo Loans

Exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA).

Balloon Mortgage

Short-term mortgage with low or no monthly payments followed by a large "balloon" payment at the end.

Specialty Financing




Refinancing involves replacing an existing mortgage with a new one, often to take advantage of lower interest rates, reduce monthly payments, or cash out equity. Key considerations include closing costs, the break-even point, and the impact on the loan term.

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