pay for the duration of the loan. In that case, FRMs can be the ideal choice. However, if a borrower wants a lower interest rate at the beginning, a different type of mortgage is available.
TYPES OF MORTGAGE INSURANCE
Once a borrower decides between a Fixed-Rate Mortgage, an amortizing adjustable-rate mortgage, or an interest-only adjustable-rate mortgage, they must decide on the insurance for the mortgage. There are two types of mortgage loans when it comes to insurance: conventional loans and government-insured loans. The difference between the two types is incredibly simple: government-insured loans come with insurance backed in some way by the federal government, and conventional loans are not insured or guaranteed in any way by the government. Some typical government-insured loan types are the Federal Housing Administration (FHA) program, the Veterans Affairs (VA) program, and the United States Department of Agriculture (USDA) program. There are others and borrowers should be encouraged to search for programs that could benefit them, depending on their situation.
TYPES OF MORTGAGE SIZE
The size of a mortgage is split into two categories: conforming and jumbo.
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