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Many Other Mortgage Loan Types

Many Other Mortgage Loan TypesThere are different banks and intermediaries offering mortgage loans and so they vary according to different features such as the amount of loan, the period for which the loan is taken and also the amount of interest and principle to be paid. Apart from the fixed rate, mortgage loans and the adjustable rate mortgage loans there are other loans, which are not commonly in use.

Biweekly mortgage loan is a type of mortgage loan under which the rate of interest is paid every week instead of being paid every month. This is for the convenience of the borrowers who prefer paying weekly.

Jumbo mortgage is a mortgage loan, which exceeds the loan limit set by Freddie Mac and Fannie Mae. This is sometimes called as conventional or confirming mortgage. This type of mortgage has a slightly higher rate of interest to be paid every month when compared to the other mortgage loans.

Balloon mortgage loans are under which the borrowers are allowed to pay low rate of interest every month for a period of time with a huge sum of amount to be paid when the principle amount is to be paid to the lender.

Construction mortgages are loans, which are offered to the borrowers who are to build their house instead of buying a built house.

The 2-step mortgage loan is a combination of both fixed rate mortgage as well as the adjustable mortgage loans. Under this, the interest rate is fixed may be for 3 years or 5 years or 7 years and after that the rate of interest varies. The lender has the option to call the loan due with a 30 days prior notice.

Assumable mortgage loans are which permits the house owners to hand off the loan to the buyers instead of paying at the time of selling.