What types of mortgages are available?

In Washington State, there are a few different types of mortgages available to homebuyers. The most common is the traditional fixed-rate mortgage, in which a borrower pays a set amount of interest over a specified period of time. The interest rate remains the same over the life of the loan, ensuring predictability for the borrower. Another type of mortgage is the adjustable-rate mortgage (ARM), which allows the borrower to choose a lower initial interest rate. The rate usually adjusts at specified intervals, which can involve either a decrease or an increase in the rate. This can benefit a borrower if they are disciplined about refinancing to a lower rate as soon as possible. In addition, borrowers can also obtain mortgages with smaller down payments than traditional mortgages. This includes USDA Rural Development mortgages, Federal Housing Administration mortgages, and VA loans. These mortgages are offered to people who may not have access to the more traditional mortgage programs. Finally, lenders in Washington may also offer special types of mortgages, such as interest-only and balloon mortgages. These types of mortgages may provide a lower monthly payment but, if the borrower does not have a good plan to pay off the loan, can be costly in the end. Overall, there are several types of mortgages available in Washington State. It’s important for homebuyers to understand the different options, and find the best fit for their individual needs.

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What types of mortgages are available?

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