Holicent
VIP Contributor
There are many different types of mortgages, and it's important to know what type your mortgage falls into before you apply for one.
Here are the main categories you can expect to see:
Conventional Mortgage: This is a fixed-rate mortgage, meaning that the interest rate will not change over time. Your loan amount is usually based on the value of your home.
Adjustable Rate Mortgage (ARM): ARMs normally offer a lower purchase price than conventional mortgages but higher monthly payments after you close on the house. Like conventional mortgages, they also have fixed interest rates.
Jumbo Loan: Jumbo loans are larger than other mortgages in order to build up equity in your home over time. They are also known as "super prime" loans because they offer extremely favorable terms and rates to borrowers who meet certain criteria. There are many different types of mortgages, and each type has its own set of pros and cons.
Here are the main categories you can expect to see:
Conventional Mortgage: This is a fixed-rate mortgage, meaning that the interest rate will not change over time. Your loan amount is usually based on the value of your home.
Adjustable Rate Mortgage (ARM): ARMs normally offer a lower purchase price than conventional mortgages but higher monthly payments after you close on the house. Like conventional mortgages, they also have fixed interest rates.
Jumbo Loan: Jumbo loans are larger than other mortgages in order to build up equity in your home over time. They are also known as "super prime" loans because they offer extremely favorable terms and rates to borrowers who meet certain criteria. There are many different types of mortgages, and each type has its own set of pros and cons.