Different Types of Mortgage Loans That You Can Apply For

There are many varieties of mortgages available. Sometimes it can be difficult to see which mortgage loan is suitable for you. I will discuss the three major types of mortgage loans in the marketplace. Most banks and lenders offer mortgages that belong to one of these categories:

Fixed mortgage loans are the most popular and common among the three kinds of mortgage loan. You take a home finance loan from a lender and you pay a certain repayment amount for a fixed time frame. Most people usually choose 30 year fixed mortgages as the monthly repayment amounts are low and the interest rates usually evens out in a 30 year period. You can get a quick loan through http://floridarealtyandmortgages.com/.

Convertible loans are becoming popular as it allows people to keep their mortgage loan options open making it possible for more flexibility. If you find rates of interest are too high, you can convert to your fixed rate mortgage loan. If rates of interest are low, you can also convert to ARM based mortgages. There are too many varieties of convertible loans under this classification. However I list one type of convertible loans I dealt together with.

A balloon loan is a fixed rate convertible loan. Normally, you start off by repaying small monthly repayments for a period of years, usually 5 or perhaps 7 years. At the end of this period, you will need to settle the loan at once.

These are mortgage loans which might be only being offered to a small grouping of people. For example the FHA mortgages are only available for first time home buyers or people together with bad credit.