Cutting Through the Clutter: A Guide to the Different Types of Mortgages

From fixed-rate to adjustable-rate, there are a wide variety of Top Rankin Mortgages available for potential homebuyers. Each has its own unique set of advantages and disadvantages, so it’s important to understand all the types of mortgages on offer before making a decision.

Fixed-Rate Mortgage: Many homebuyers opt for a fixed-rate mortgage due to the stability it offers. A fixed-rate mortgage is one in which the interest rate remains the same throughout the entire term of the loan, usually between 10 and 30 years.

Adjustable-Rate Mortgage (ARM): An adjustable-rate mortgage is just the opposite of a fixed-rate mortgage – with this type of loan, the interest rate can fluctuate over time, meaning that your monthly payments can rise or fall as market conditions change.

Interest-Only Mortgage: As its name implies, this type of mortgage allows borrowers to make only interest payments for a certain period of time, usually up to five years. At the end of this period, borrowers must start repaying both principal and interest on their loan.

Reverse Mortgages: A mortgage is an option for older homeowners who are cash-strapped need additional income. This type of loan allows them to access the equity in their home without selling it.

Balloon Mortgage: A balloon mortgage is a short-term loan that features low interest payments for the first few years, then requires a large lump sum payment at the end of the term.

No matter what type of Top Rankin Mortgages you choose, it’s essential to work with an experienced lender who can explain the details and help you find the best option for your circumstances.