Mortgage Calculator: Types of Mortgage Loans
Sunday, March 6th, 2011
The most secure and common type of mortgage is a fixed-rate mortgage where a borrower consents to an interest rate that never changes resulting in fixed monthly payments for the life of the loan. The second type is an adjustable mortgage. An adjustable mortgage has interest rates and payments that fluctuate during the loan period. Once all adjustments are completed the loan balance must be paid off. For first time homebuyers, a Federal Housing Administration (FHA) loan usually requires little or no down payment. For veterans there is a (VA) loan option based on discharge status and time served. Interest rates are, on average, higher but require no down payment.
There are also specialty mortgages that include reverse mortgage payment calculator for those older than 62 with no disposable income. Equity loans are additional loans for owners with collateral tied up in the equity in their homes. The last type is a bridge loan for buyers who have not sold their other homes. Doing research and applying a mortgage calculator will enable any borrower to be prepared for choosing their mortgage loan.