What are the different types of mortgages?

Mortgages are types of loans used to finance residential real estate in Hawaii. The most common types of mortgages are Conventional, FHA, VA, Jumbo, and Adjustable-Rate. Conventional mortgages are mortgages made by private lenders that are not backed or insured by the government. They typically require higher credit scores and down payments than other loan types. FHA, or Federal Housing Administration loans, are mortgages backed by the government. They typically require a lower credit score and small down payments than Conventional mortgages. VA, or Veterans Affairs loans, are offered by the government to military members and their families. They typically require no down payment and offer lower rates than other loan types. Jumbo mortgages are larger mortgage loans that exceed the limits set by government-sponsored entities like Fannie Mae and Freddie Mac. They often require higher credit scores and down payments and have higher mortgage rates than other loan types. Adjustable-Rate mortgages (ARMs) typically offer an initial period with a fixed interest rate that is lower than that of fixed-rate mortgages. After the initial period, the interest rate will generally adjust according to market conditions. ARMs usually have lower monthly payments and potentially lower interest costs than fixed-rate mortgages. It is important to understand the different types of mortgages available in Hawaii in order to make an informed decision when purchasing a home. There are a number of factors to consider when deciding which type of loan is best suited for your needs, such as credit score, down payment, loan limits and current market conditions.

Related FAQs

What is an easement?
What is an FHA loan?
What is the difference between an owner-financed loan and a conventional loan?
What do I need to know about landlord-tenant laws?
What is a “due on sale” clause?
What is a homeowners association?
What is a quit claim deed?
What happens if I breach a contract?
What options do I have if I'm facing foreclosure?
What is a principal residence exemption?

What are the different types of mortgages?

Related FAQs

Related Blog Posts