Did You Know About these Types of Mortgages?

Types of Mortgages You May Not Know About Yet

If you are searching for a home loan, then you probably already know that there are quite a number of types of mortgages to be found. However, there may be even more than you are aware of. Each of these is different and may offer you a better option than you thought possible.

Balloon Mortgage

The first type is a balloon mortgage. With this mortgage, the monthly payments will remain the same for a pre-set amount of time. After that time has ended, the final payment on the mortgage would be paid off in one large sum. Keep in mind that this type of mortgage is only available in certain areas.

Jumbo Mortgage

Jumbo mortgage is the next type. This is different in that it is a loan that is for a larger sum than most. The limits on these types of loans run from $400,000 to $600,000. In some areas, it can actually be higher. This type of loan is usually for those who wish to live in expensive types of housing areas.

Seller Financing

Seller financing is something that a lot of people are not fully aware of with mortgages. A seller can actually be the one that provides the mortgage to the buyer. By way of a promissory note, the buyer would make their payments to the seller instead of making them to a bank.

Construction-Permanent Loan

The last type is known as a construction-permanent loan. This type of loan is one that is for a buyer who wants to build a home rather than buy a home that already exists. During construction of the home, payments are made to the contractor. Those payments become a permanent loan once the home is built. There are many options for home loans. Important that you find the loan that best suits your home buying needs.