Types of Mortgages

Before we discuss types of mortgages let us clairify what a Mortgage is. A Mortgage is a loan that covers the balance between the purchase price of your home and your down payment.There are many types of Mortgages these days. The Palmdale Mortgage Guide will introduce some of the most common mortgages. All loans fall into two major categories. Fixed Rate and Adjustable Rate Mortgages. Fixed is fixed for the lie of the loan. Adjustable (arm) the interest rate adjusts up and down depending on the fianncial climate. The FHA Mortgage is a federally insured mortgage program. The Reverse Mortgage is a Mortgage Program that actually pays seniors instead of them making mortgage payments. The Conventional Mortgage which sometimes require a larger down payment than Federally Insured Mortgage Programs. There are also short term high interest Private Money Mortgages for those who have a harder time qualifying for a Conventional Mortgage. Loans are ammortized over different time spans but the most common is the 30 year ammortization which consists of 360 payments.