Understanding Mortgage Types
When considering a mortgage, it’s essential to understand the various types available. Here are the most common:
- Fixed-Rate Mortgages: These have a constant interest rate and monthly payments that never change.
- Adjustable-Rate Mortgages (ARMs): These have interest rates that may change periodically based on market conditions.
- FHA Loans: These are government-backed loans ideal for first-time homebuyers.