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Mortgage Types
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Fixed-Rate Mortgage
A mortgage with a constant interest rate for the entirety of the loan's term. This leads to predictable monthly payments.
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.
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.
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.
FHA Loan
A loan insured by the Federal Housing Administration designed for lower-income borrowers or those with smaller down payments.
VA Loan
A mortgage guaranteed by the Department of Veterans Affairs, available to eligible veterans and their spouses, with no down payment requirement.
USDA Loan
A mortgage program backed by the United States Department of Agriculture, designed to help rural homebuyers with 100% financing.
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.
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.
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.
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