What are the different types of mortgages available?

Mortgage law in Washington covers the different types of mortgages available to individuals. These can be broadly grouped into two categories: fixed-rate and adjustable-rate mortgages (ARM). A fixed-rate mortgage is a loan with a fixed interest rate and monthly payment that stays the same over the life of the loan. It’s typically the most popular choice for homebuyers since the rate doesn’t change with market trends or other outside factors. Washington mortgage laws may also regulate the amount of time that a fixed-rate mortgage can last. An adjustable-rate mortgage (ARM) is a loan where the interest rate can adjust over time. ARMs start off with an initial fixed-rate period, usually three, five, seven, or ten years, after which the rate will periodically adjust based on factors such as the current market conditions and the index the loan is tied to. The ARM rate is usually less than the fixed rate at first, but can increase or decrease over time. This can be beneficial for buyers who plan on selling their home or refinancing after the initial period. Other types of mortgages in Washington may include jumbo loans, which are mortgages larger than the current conforming loan limit; government-backed loans, such as FHA and VA loans; and special programs for first-time homebuyers. Mortgage laws in Washington may also set guidelines for loan qualifications and the maximum loan amount for certain programs.

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What are the different types of mortgages available?

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