Perfect Mortgage Loan Type Your Dream Home  

Image : Unsplash

10

Description: Interest rate remains constant throughout the loan term. 

Benefits: Predictable monthly payments and stability in budgeting. 

Fixed-Rate Mortgage 

1

Description: Interest rate changes periodically after an initial fixed period 

Benefits: Lower initial payments and potential savings if rates remain low. 

Adjustable-Rate Mortgage (ARM) 

2

Description: Only interest is paid for an initial period, followed by payments of both principal and interest. 

Benefits: Lower initial payments and improved cash flow. 

Interest-Only Mortgage

3

Description: Insured by the Federal Housing Administration for low-to-moderate-income borrowers. 

Benefits: Easier qualification and lower down payment requirements. 

FHA Loan 

4

Description: Guaranteed by the Department of Veterans Affairs for veterans and service members.  

Benefits: No down payment, no private mortgage insurance, and competitive rates. 

VA Loan 

5

Description: Backed by the U.S. Department of Agriculture for rural and suburban homebuyers. 

Benefits: No down payment and reduced mortgage insurance costs. 

USDA Loan 

6

Description: For loan amounts exceeding conforming loan limits. 

Benefits: Enables financing for high-value properties. 

Jumbo Loan 

7

Description: Lower initial payments with a large lump-sum payment at the end. 

Benefits: Lower initial monthly payments, suitable for short-term plans. 

Balloon Mortgage 

8

Description: For homeowners aged 62 or older to convert home equity into cash. 

Benefits: No monthly mortgage payments, funds can be used for various needs 

Reverse Mortgage 

9

Description: Not insured or guaranteed by the federal government. 

Benefits: Lower costs if the borrower has a good credit score. 

Conventional Loan 

10