What are the different types of mortgages available?

In California, there are several different types of mortgages available. The most common is a fixed-rate mortgage, which is a loan with an interest rate that remains fixed over the entire life of the loan. This type of loan typically features a term of 30 years and is a popular choice for those wishing to purchase a home. Another type of mortgage available in California is an adjustable-rate mortgage, or ARM. With this type of loan, the interest rate can change over time, usually once each year. This makes the ARM attractive for those who want a lower interest rate at the outset, but bear in mind that the interest rate can rise over time. A third type of mortgage is a jumbo loan, which is a loan that exceeds the limits set by the Federal Housing Finance Agency (FHFA). This type of loan is often used by those who are buying an expensive home and need to borrow a larger amount than is allowed by the FHFA. Finally, a fourth type of mortgage is a reverse mortgage, which allows homeowners who are 62 years and older to access the equity in their home. This type of loan can provide a source of income for those who are retired and need additional funds to cover their living expenses.

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What are the different types of mortgages available?

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