What are the different types of mortgages?

In Texas, there are several types of mortgages available to homeowners. The most common type of mortgage is called a Fixed-Rate Mortgage, where the interest rate remains the same throughout the duration of the loan. Another type of mortgage is an Adjustable-Rate Mortgage (ARM), in which the interest rate can fluctuate based on market conditions. Jumbo Mortgages are for homeowners who need financing above the amount allowed for conventional mortgages. An FHA or VA loan is a loan backed by the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). These loans typically require less money down and have more relaxed qualifying criteria than conventional mortgages. A Reverse Mortgage is a loan that allows homeowners of a certain age to borrow against the equity in their home. Balloon Mortgages are short-term loans in which the borrower makes low initial payments but must pay off the remaining balance in one lump sum at the end of the loan term. A Land Contract is an agreement between a seller and a buyer, where the seller provides the financing for the purchase of a home. Finally, a Wraparound Mortgage is a financing arrangement wherein a borrower takes out a loan which is secured by the existing mortgage on the property.

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What are the different types of mortgages?

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