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Mortgage Types
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Balloon Mortgage
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.
Fixed-Rate Mortgage
A mortgage with a constant interest rate for the entirety of the loan's term. This leads to predictable monthly payments.
VA Loan
A mortgage guaranteed by the Department of Veterans Affairs, available to eligible veterans and their spouses, with no down payment requirement.
Adjustable-Rate Mortgage (ARM)
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.
Construction Loan
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.
Jumbo Loan
A mortgage loan that exceeds the conforming loan limits set by the Federal Housing Finance Agency, often used to purchase higher-priced homes.
USDA Loan
A mortgage program backed by the United States Department of Agriculture, designed to help rural homebuyers with 100% financing.
Interest-Only Mortgage
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.
FHA Loan
A loan insured by the Federal Housing Administration designed for lower-income borrowers or those with smaller down payments.
Reverse Mortgage
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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