Current Mortgage Types:
Here is a list for your reference. Please note that mortgage business is experiencing frequent changes. Contact your lender directly or write to me for further information or assistance. I will put you in touch with experts.
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Fixed- Rate Mortgages- Buyers can choose from fixed-rate mortgages of varying lengths- 10-year, 15-year, 20-year, 30-year, 40-year and even 50-year- all of which are completely amortized.
- FHA Loans- FHA mortgage loans are insured by the government through mortgageinsurance that is funded into the loan. First-time homebuyers are ideal candidates for an FHA loan because the down payment requirements are minimal and FICO scores do not matter.
- VA Loans- This type of government loan is available to veterans who have served in the U.S. Armed Services and, in certain cases, to spouses of deceased veterans. The requirements vary depending on the year of service and whether the discharge was honorable or dishonorable. The main benefit to a VA loan is the borrower doesn’t need a down payment. The loan is guaranteed by the Veterans Administration but funded by a conventional lender.
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Interest-Only Mortgages- These loans aren’t really interest-only, meaning the borrower pays only interest on the loan. Interest-only loans contain an option to make an interest only payment, consisting of the original loan balance at maturity.
Hybrid Types of Mortgage Loans:
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Adjustable-Rate Mortgages- Adjustable-rate mortgages (ARMs) come in many flavors, colors and sizes. The interest rate fluctuates. It can move up or down monthly, semi-annually, annually or remain fixed for a period of time before it adjusts.
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Option ARM Mortgages- On these adjustable-rate mortgages, as the name implies, borrowers can choose from a variety of payment options and index rates. But beware of the minimum payment option, which can result in negative amortization.
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Combo/Piggyback Mortgage Loans- This type of mortgage financing consists of two loans; a first mortgage and a second mortgage. The mortgages can be adjustable-rate mortgages or fixed rate, or a combination of the two. Borrowers take out two loans when the down payment is less than 20 percent to avoid paying private mortgage insurance.
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Mortgage Buydowns- Borrowers who want to pay a lower interest rate initially often opt for mortgage buydowns. The interest rate is reduced because fees are paid to lower the rate, which is why it’s called a buydown. Buyers, sellers or lenders can buy down the interest rate for the borrower.
