What are the different types of mortgages?

Mortgages are a type of property law that involve loans secured against real estate. In Washington State, there are several types of mortgages available, each with their own set of regulations. The most common type of mortgage is the fixed-rate mortgage. This is the traditional loan where a borrower makes a series of equal monthly payments over a set period of time, for a fixed rate of interest. The other common type of mortgage is the adjustable-rate mortgage, or ARM. With an ARM, the interest rate may fluctuate during the life of the loan. Because of the variable interest rate, ARMs generally have lower initial interest rates compared to fixed-rate mortgages. Finally, homebuyers who cannot qualify for a traditional mortgage can try to obtain a government-backed mortgage. These include FHA loans and VA loans, which are insured by the Federal Housing Administration and the Department of Veterans Affairs, respectively. Government-backed mortgages usually have more flexible approval requirements and lower interest rates, but require the borrower to pay mortgage insurance premiums. In summary, there are three major types of mortgages available in Washington State: fixed-rate mortgages, adjustable-rate mortgages, and government-backed mortgages.

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