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Mortgage For Starters
July 21st, 2016 11:42 AM

(Chinese Version)

Mortgages have a lot of types and can be classified by many different standards. 



  • Fixed Rate Mortgage: a fixed interest rate for the entire loan. Borrowers pay a fixed amount payment every month.
  • Adjustable Rate Mortgage (ARMs): interest rate adjusted along with market.
    • Intermediate ARM: a period time with fixed rate and will change to adjustable rate. For instance, 3/1 means 3 year fixed rate and then 1 adjustable annually.
    • Flexible payment option ARM: every month borrows choose payment method with a limit how much payments can vary in a year.
    • Convertible ARM: a type that the loan can be change to a fixed rate loan after a period of time.
  • Balloon Mortgage: Principles are very few with a fixed rate. Entire balance is due as a balloon payment at the end.




  • Conforming Mortgage: meet certain requirement such as size of the loan set by Fannie Mae and Feddie Mac.
  • Non-Conforming Mortgage: Borrowers do not qualify for a conforming mortgage with a typically high interest rate and insurance requirement.
    • Jumbo Mortgage: a type of mortgage when amount exceed the limit of a conventional loan with a high credit quality.
               

  • Government Mortgage: Loans insured and guaranteed by government with specific qualification.
    • FHA Loans: Insured by the Federal Housing Administration (FHA) with a low down payment. Mortgage insurance is also required.
    • VA Loans: Guaranteed by the U.S. Department of Veterans Affairs (VA) and it offer to veterans only.
    • RHS Loan: The Rural Housing Service (RHS) offers mortgage programs to help rural residents with low-to-moderate- income to purchase a house.
  • Conventional Mortgage: A loan that is not guaranteed or insured by any government agency with a typically fixed in its terms and rate.

 


Posted in:General and tagged: Mortgage
Posted by Michael Hobbs on July 21st, 2016 11:42 AMPost a Comment

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