What are the different types of mortgages available?

In Virginia, people have many mortgage options to choose from when purchasing a home. Depending on your needs and financial position, the type of mortgage you choose will vary. Some of the most common types of mortgages are conventional mortgages, adjustable-rate mortgages (ARMs), government-insured mortgages, and hybrid mortgages. Conventional mortgages are traditional, long-term mortgages that are not insured or guaranteed by the government. They usually require a down payment of at least 20%. ARMs are mortgages where the interest rate adjusts over the life of the loan. The rate can go up or down depending on market conditions. Government-insured mortgages, such as FHA and VA loans, are insured by the federal government. These types of loans can help people with low credit scores and down payments qualify for mortgages. Hybrid mortgages, like an ARM, also involve changing interest rates over a set period of time. However, the rate may stay fixed for a period before changing. Finally, there are jumbo mortgages, which are loans for higher-priced homes. These mortgages are usually not eligible for government-insured loans. No matter which type of mortgage you select, it is important to research and compare different options to find the best fit for your situation. It is a good idea to speak with a financial advisor or real estate professional to get advice on the best type of mortgage for you.

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What are the different types of mortgages available?

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