There are several types of real estate mortgages in the United States, each designed to meet the specific needs of borrowers.

1. Fixed-Rate Mortgage (FRM):

   • The interest rate remains constant throughout the loan term.
   • Monthly payments remain the same, providing predictability for budgeting.

2. Adjustable-Rate Mortgage (ARM):

   • The interest rate is variable and can change periodically based on market conditions.
   • Typically, there is an initial fixed-rate period followed by adjustments.

3. FHA Loans (Federal Housing Administration):

   • Insured by the Federal Housing Administration.
   • Often suitable for first-time homebuyers with lower down payment requirements.

4. VA Loans (Department of Veterans Affairs):

   • Available to eligible veterans, active-duty service members, and surviving spouses.
   • Usually offers favorable terms, including no or low down payment.

5. USDA Loans (U.S. Department of Agriculture):

   • Designed for borrowers in rural areas who meet income and property eligibility criteria.
   • Can offer low or zero down payment options.

6. Conventional Loans:

   • Not insured or guaranteed by government agencies.
   • Typically require higher credit scores and larger down payments compared to government-backed loans.

7. Interest-Only Mortgage:

   • Borrowers pay only interest for a specified initial period (e.g., 5 or 10 years).
   • After the interest-only period, payments include both principal and interest.

8. Balloon Mortgage:

   • Offers lower monthly payments for a fixed period, after which the remaining balance becomes due in a lump sum (balloon payment).
   • Often used by borrowers who plan to sell or refinance before the balloon payment is due.

9. Reverse Mortgage:

   • Available to seniors aged 62 and older.
   • Allows homeowners to convert home equity into cash, with loan repayment typically deferred until the borrower sells the home, moves, or passes away.

10. Jumbo Loans:

    • Loans that exceed the conforming loan limits set by government-sponsored enterprises like Fannie Mae and Freddie Mac.
    • Typically used for high-value properties.

11. Interest-First Mortgage:

    • Borrowers pay interest only for a specified period, followed by payments of both principal and interest.

It's important for potential homebuyers to carefully consider their financial situation and goals when choosing a mortgage type. Additionally, mortgage terms and availability may vary based on the lender and current market conditions.

Give us a call today to determine which mortgage type best suits your needs!