In an interest-only mortgage, the borrower only pays the interest on the loan for a set amount of time, often 5 to 10 years. During this time, the borrower makes no principal payments, therefore the loan sum stays the same. Some borrowers may find interest-only mortgages tempting because the monthly payments are less than those…

A balloon mortgage is a form of mortgage that features a brief fixed-rate period, often lasting 5-7 years, followed by a longer period with an adjustable rate. The term “balloon” alludes to the fact that at the end of the brief term, the entire loan debt is payable, or “balloons.” The fact that the monthly…

With a reverse mortgage, homeowners who are 62 years of age or older can turn some of the equity in their property into cash. Reverse mortgages don’t demand any payments as long as the borrower stays in the home, in contrast to conventional mortgages, which call for monthly payments to the lender. The loan is…

One of the most important choices you’ll have to make when buying a home is selecting the right mortgage. There are many different types of mortgages, and each has its own specifications, terms, and features. Understanding your options is essential if you want to make a wise decision. The following is a brief list of…