What are the different types of mortgages (e.g. fixed-rate, adjustable-rate, FHA, VA)?
Curious about Mortgages
In India, the different types of mortgages include:
1. Fixedrate mortgage: A fixedrate mortgage has a fixed interest rate throughout the loan term. The repayment amount remains constant during the loan tenure, making it easier for borrowers to budget.
2. Adjustablerate mortgage: An adjustablerate mortgage has an interest rate that varies based on market conditions. The interest rate may change periodically during the loan tenure, which can result in fluctuating monthly payments.
3. FHA (Federal Housing Administration) loan: An FHA loan is a governmentbacked mortgage that is designed to help people with low or moderate incomes buy a home. The down payment requirement for an FHA loan is typically lower than for other types of mortgages.
4. VA (Veterans Affairs) loan: A VA loan is a mortgage that is available to eligible veterans and activeduty military personnel. This type of loan often has lower interest rates and requires no down payment.
5. Rural Housing Service (RHS) loan: An RHS loan is a type of governmentbacked mortgage that is designed to help people in rural areas buy a home. This loan typically has lower interest rates and no down payment requirement.
It's important to note that the availability and terms of these types of mortgages may vary based on the lender and specific loan product.
Empower Creators, Get Early Access to Premium Content.