What are the different types of mortgages?

Mortgages, or loans taken out to purchase a property, are a common part of property law in North Carolina. There are many different types of mortgages, each suited to different situations and circumstances. A fixed-rate mortgage is the most common type of loan. This loan has an interest rate that never changes over the life of the loan, which is usually 15 or 30 years. This makes it easier to budget for and plan, as you know exactly how much your payments will be each month. Adjustable-rate mortgages (ARMs) feature an interest rate that changes over the life of the loan, usually every few years. This type of mortgage can be risky, as the payments may increase substantially if interest rates go up. Another kind of mortgage is a reverse mortgage, which is aimed at homeowners aged 62 and older. This loan allows you to access the equity in your home and use it for any purpose. The loan does not need to be paid back until the homeowner moves, sells the home, or passes away. Finally, a hybrid mortgage combines aspects of fixed-rate and adjustable-rate mortgages. Typically, this loan has a fixed-rate for a certain amount of time, and then converts to an adjustable-rate for the remaining time of the loan. These are just a few of the different types of mortgages available in North Carolina. It is important to consult with a loan professional to determine which mortgage is right for you.

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What are the different types of mortgages?

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