Mortgage Center

Mortgage types refer to the various loan structures available for financing real estate purchases. These types include fixed-rate mortgages, with consistent interest rates over the loan term, and adjustable-rate mortgages, where interest rates fluctuate over time. Other variations include interest-only mortgages, government-insured loans like FHA and VA loans, and jumbo loans for high-value properties.

• Adjustable-Rate Mortgage (ARM)

  An ARM has an initial fixed-rate period, followed by an adjustable interest rate that can change periodically, usually annually.

• Balloon Mortgage

  Features lower monthly payments for a fixed period (usually 5-7 years) followed by a lump sum payment at the end.

• Bridge Loan

  A short-term loan that helps bridge the gap between selling one home and purchasing another.

• Buy-Down Mortgage

  Involves paying an upfront fee to reduce the interest rate and monthly payments

• Conventional Loan

  Not insured or guaranteed by a government agency, these loans typically require a higher credit score and a larger down payment.

• FHA Loan

  Insured by the Federal Housing Administration, these loans are suitable for first-time homebuyers and require a lower down payment.

• Fixed-Rate Mortgage

  This is a traditional mortgage with a fixed interest rate for the entire loan term, typically 15, 20, or 30 years.

• Graduated Payment Mortgage (GPM)

  The initial payments are lower and gradually increase over time.

• Interest-Adjustable Mortgage

  This type of mortgage allows you to choose the interest rate, and the monthly payment adjusts accordingly.

• Interest-Only Mortgage

  Borrowers pay only the interest for a set period, typically 5-10 years, after which they start paying principal and interest.

• Jumbo Loan

  A loan that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA).

• Reverse Mortgage

  Available to homeowners aged 62 or older, this type of loan allows them to convert their home equity into cash.

• Second Mortgage/Home Equity Loan

  Borrowers use their home equity as collateral for a second loan, often used for major expenses or debt consolidation.

• USDA Loan

  Backed by the U.S. Department of Agriculture, these loans are designed for rural and suburban homebuyers with low to moderate incomes.

• VA Loan

  For eligible veterans, active-duty service members, and some National Guard and Reserves, these loans offer favorable terms and do not require a down payment.