The 4 Types Of Mortgage Loans Compared And Explained
Why pickone over another? Read on to choose with confidence. 1. Fixed-Interest Home Loan 2. Adjustable-Rate Mortgage (ARM) 3. Interest-Only Loan 4. Federal Housing Administration (FHA) Loan
What Is a Balloon Mortgage?
Shopping for a mortgage? Consider taking out a balloon mortgage, which offers low interest rates and affordable payments. A balloon mortgage is like a conventional fixed-rate mortgage in that it offers stable payments at a set interest rate over a specific number of years, but that’s where the similarity ends. Balloon mortgages don’t fully amortize, so there’s a large payment due at the end of the loan’s term. They’re not for everyone, but balloon mortgages are an ideal choice under certain circumstances.