Explore tens of thousands of sets crafted by our community.
Mortgage Types and Terms
20
Flashcards
0/20
Adjustable-Rate Mortgage (ARM)
Features an interest rate that can change at specified times, generally in relation to an index.
VA Loan
A mortgage loan program established by the United States Department of Veterans Affairs to help veterans and their families obtain home financing.
Conforming Loan
A mortgage that is equal to or less than the loan limits set by the FHFA and meets other criteria.
Conventional Loan
A mortgage not guaranteed or insured by any government agency, such as FHA or VA.
Bridge Loan
A short-term loan used to 'bridge' the gap between the costs of new property and expected proceeds from the sale of a current home.
Home Equity Line of Credit (HELOC)
A revolving line of credit where your home is used as collateral.
Construction Loan
A short-term loan used to finance the building of a home or another real estate project.
Graduated Payment Mortgage (GPM)
A type of fixed-rate mortgage where the payment increases gradually over time.
Jumbo Loan
A mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA).
Home Equity Loan
A type of loan in which the borrower uses the equity of their home as collateral.
Interest-Only Mortgage
Allows the borrower to pay only the interest on the mortgage for a set period of time.
FHA Loan
A government-backed mortgage insured by the Federal Housing Administration, designed for lower-income borrowers.
USDA Loan
A zero-down-payment mortgage for rural and suburban homebuyers, offered by the United States Department of Agriculture.
Reverse Mortgage
Allows older homeowners to convert part of their equity into cash without selling their home.
Interest-First Mortgage
A type of mortgage where early payments are applied only to interest, not to the principal.
Buydown Mortgage
A mortgage where the interest rate is lowered due to an upfront payment or periodic payments by the borrower or a third-party.
Fixed-Rate Mortgage
Offers a constant interest rate and monthly payments over the life of the loan.
Subprime Mortgage
A type of mortgage made to borrowers with lower credit scores, often at higher interest rates.
Shared Appreciation Mortgage
A loan where the lender may share in the appreciation of the home's value in exchange for offering a lower interest rate.
Balloon Mortgage
Requires a large payment at the end of the loan term, typically after a series of low monthly payments.
© Hypatia.Tech. 2024 All rights reserved.