What are the different types of mortgage options available?

What are the different types of mortgage options available?

There are several types of mortgage options, including fixed-rate, adjustable-rate, interest-only, and FHA loans. Would you like to know more about any specific type?

Can you explain fixed-rate mortgages?

Sure! A fixed-rate mortgage has a constant interest rate and monthly payments that never change. This makes budgeting easier over the life of the loan.

What about adjustable-rate mortgages?

An adjustable-rate mortgage (ARM) has an interest rate that may change periodically based on changes in a corresponding financial index. This can lead to lower initial payments but potential increases later.

Are there any benefits to an interest-only mortgage?

Yes, an interest-only mortgage allows you to pay only the interest for a certain period, which can lower your initial payments. However, you'll need to pay off the principal later, which can lead to higher payments down the line.

What is an FHA loan?

An FHA loan is a government-backed mortgage that is designed for low-to-moderate-income borrowers. It requires a lower minimum down payment and has more flexible credit score requirements.