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Mortgage Types

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Fixed-Rate Mortgage

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A mortgage with a constant interest rate for the entirety of the loan's term. This leads to predictable monthly payments.

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Adjustable-Rate Mortgage (ARM)

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A mortgage with an interest rate that adjusts over time based on an index. ARM loans often start with a lower rate than fixed-rate mortgages.

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Interest-Only Mortgage

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A mortgage where the borrower pays only the interest on the loan for a set period, after which they start paying both principal and interest.

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Balloon Mortgage

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A mortgage with low monthly payments for a set term followed by one large payment (the balloon) for the remaining balance at the end of the term.

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FHA Loan

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A loan insured by the Federal Housing Administration designed for lower-income borrowers or those with smaller down payments.

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VA Loan

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A mortgage guaranteed by the Department of Veterans Affairs, available to eligible veterans and their spouses, with no down payment requirement.

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USDA Loan

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A mortgage program backed by the United States Department of Agriculture, designed to help rural homebuyers with 100% financing.

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Jumbo Loan

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A mortgage loan that exceeds the conforming loan limits set by the Federal Housing Finance Agency, often used to purchase higher-priced homes.

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Reverse Mortgage

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A loan available to homeowners 62 or older, allowing them to convert part of the equity in their home into cash without having to sell the home or make monthly payments.

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Construction Loan

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A short-term loan used to finance the building of a home or another real estate project. The borrower typically pays interest only during construction.

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