Are you looking forward to taking a loan in the near future? If the answer is yes, then you must have a clear knowledge about the types of mortgage loans available in the financial markets today, this will help you in choosing the best from among them according to your needs and demands.
Mortgage Loans are entirely different from Car Loans. Know more about all types of mortgages to pick the right option and save money. Connect with us to know about how to get a loan from the Bank to avoid wasting time.
All types of Mortgages
- Fixed Rate Mortgage Loans
- Government Guaranteed Mortgage Loans
- Balloon Mortgages
Different Types of Mortgage Loans
Fixed Rate Mortgage Loans
Fixed Rate Mortgage Loan is the oldest and the basic type of mortgage loan among different finance resources. This is a much-stabilized form of a loan. The interest rates remain the same right from the time of its origination till the time the contract remains functional. The change in market rates does not affect it.
Government Guaranteed Mortgage Loans
The Government Guaranteed Mortgage loan is especially for first time buyers or people with low income. Here the government guarantees a much lesser down payment than any other loan and the rate of interest is also low. It can be used to purchase homes for a single family or a large family given that the owner stays in it himself.
Although the payment scheme of a balloon loan is similar to that of a standard thirty-year loan, but the tenure of a balloon loan is much shorter say five to seven years.
These are three different kinds of mortgage loans, there are many other mortgage loans also like the Option ARMs, Interest Only Mortgages, etc., but these are the mostly used loans. For details on other loans refer to finance guides.