Types Of Mortgages Exploring the Pros and Cons of Each

Fixed-Rate Mortgage 

Pros: Stable payments, rate protection, budgeting, refinancing.  Cons: Higher initial rates, less flexibility, missed savings.

1

Adjustable Rate Mortgage (ARM) 

Pros: Lower initial rates, flexibility, potential savings.  Cons: Rate uncertainty, higher payments, budgeting challenges.

2

Interest-Only  Mortgage

Pros: Lower payments, cash flow flexibility, investment opportunities. Cons: No principal reduction, potential higher payments, limited equity growth. 

3

FHA Loans  

Pros: Lower down payment, lenient credit criteria, potentially lower rates.  Cons: Mortgage insurance, limited loan amount, property restrictions.

4

VA Loan

Pros: No down payment required, lower interest rates, flexible qualification requirements for veterans and active-duty military.  Cons: Limited eligibility, funding fee, appraisal process. 

5

Balloon Mortgage

Pros: Lower initial payments, short-term financing option.  Cons: Large balloon payment at the end, potential for refinancing challenges, limited availability. 

6

Reverse Mortgage

Pros: Supplemental income for seniors, no monthly mortgage payments, potential to stay in the home. Cons: Reduced equity, high fees and closing costs, potential impact on inheritance. 

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