Different Types of Mortgages
If you have not taken your time to learn about mortgages then you need to do so. There are a lot of different mortgage types that you might not even have known about. The more you know about these mortgages the better it will be for you and your mortgage. The following are some of the other types of mortgages that you could get. The best thing about a mortgage is that you can set it up in the best situation for you. Do not just settle for a standard mortgage when you can do so much more. Take your time and really find something that will work for you. Hopefully, you learn a new thing or two with this information.
Two-Step Mortgage
These mortgages will combine different elements of a mortgage. Basically, when you get this mortgage you will have a fixed rate and a payment for a certain amount of time. After that first period is up then your loan will adjust and stay the same for the remainder of the loan. You might see it as a 5/25 loan. The first five years will have one payment, then the following 25 years will have a second payment. This is designed to help people save some money up front on the loan. Just make sure you remember about the adjusting period.
Assumable Mortgage
As far as mortgages go, these tend to be a little more rare than other types of mortgages. If you have this type of mortgage then it can be handed off to the buyer of your home. This way the new buyer can just assume it and you do not have to pay it off using the money you received from the purchase. This might be helpful because you could have a good rate that is appealing to someone. They would rather have your rate than a higher rate that they might get now. This is rare but convenient for both parties involved.
Construction Mortgage
If you want to build a home rather than just buy a current one, then this might be right for you. This will be a two-step borrowing ordeal. During the actual construction you will pay higher rates. Interest will be paid on the withstanding amount. When the home is finished you will be able to convert your loan into a more stable fixed rate loan. This way you have the required help for both parts of the process. This will take some burden off of your mind when it comes to finding out ways to have money for the building costs.
