Mortgages are the loans that borrowers use to secure financing for their home. There are several different types of mortgages that a borrower can choose from. The interest rate for a mortgage is generally quite low compared to other loans. This is because they are secured loans. Borrowers can have their homes taken from them if the mortgage is not paid in a timely manner. Mortgage types include a fixed-rate mortgage, variable-rate mortgage and interest-only mortgage. Interest-only loans allow a borrower to pay only the interest for the first three to five years of the loan. FHA loans are available for those who may otherwise have trouble qualifying for a mortgage. These are government backed loans that don’t require down payments or the payment of closing costs before closing. These costs are rolled into the loan.
