Some of the most common types of mortgages include:
Fixed-rate mortgages: These mortgages have an interest rate that remains the same throughout the life of the loan. This means that the monthly payments will stay the same and the borrower can budget accordingly.
Adjustable-rate mortgages (ARMs): These mortgages have an interest rate that can change over time, based on a financial index. This means that the monthly payments may increase or decrease.
FHA loans: These loans are backed by the Federal Housing Administration and are available to first-time homebuyers or those with low-to-moderate incomes. They have less strict credit requirements but require a higher down payment.
VA loans: These loans are available to veterans, active military members, and their families. They are backed by the Department of Veterans Affairs and have relaxed credit and income requirements.
USDA loans: These loans are available to low- and moderate-income borrowers in rural areas, and are backed by the U.S. Department of Agriculture.
Jumbo loans: These loans are for high-value properties, typically over $548,250, and have stricter credit and income requirements.
Balloon mortgages: These mortgages have a lower interest rate and a shorter term, usually five to seven years. At the end of the term, the remaining balance is due in full.
Reverse mortgages: These mortgages are available to senior citizens and allow them to tap into the equity of their home without selling it or making monthly payments.
Please note that the availability of these types of mortgages may vary depending on the area, lender and the borrower's credit score and income.