Mortgages
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
Factoring
Leasing
Mortgage
Refinancing
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.
