Did you ever listened about the name of mortgages? Mortgages are the form of loans that are being further put into so many categories. You will probably be finding so many types of mortgages that are being readilu accessible to the home buyers. Right below the post, we will be explaining around with some of the major and important types of mortgages as available in 2017.
Important Types of Mortgages Available in 2017
- Fixed-rate Mortgage: This type of the mortgage loans have been all set with the similar interest as for the purpose of the whole repayment term. This is for the fact that the monthly payment size of your loan would remain the same in each single month of the year. It will not be going to change at all. It will be holding the same interest rate and also the similar monthly payment, for the entire term.
- Adjustable-rate Mortgage: It is abbreviated as ARMs. This category of the loan type has been all settled with the interest rate that will keep on changing and adjustment from time to time. This rate will keep on changing as each single year. It is also primary known by the name of “hybrid” product. A hybrid ARM loan is the one that hence start off from the fixed or unchanging interest rate before you make your way into the adjustable rate.
- FHA Loans: On the third, we would come up with the name of FHA loans! This Federal Housing Administration (FHA) mortgage insurance program is all managed and supervised by the Department of Housing and Urban Development (HUD). It has been all set best for the purpose of all types of borrowers. Right through this type of mortgage you would be able to make the down payment as low as 3.5% of the purchase price.