For more info: www.c21shortsalexpert.com Marisa Lopez Raster is a real estate agent in north San Diego County and specializes in short sales, foreclosure investment, and mortgage advice. In this video Marisa goes in great detail to explain the features, benefits, and drawbacks, of the three major types of real estate mortgage loans the VA, the FHA, and the Conventional Loan. Marisa is an experienced realtor and can help you buy a home or sell your home in the north San Diego county area. This video goes into great detail and is very specific. Contact: 760-801-6714 marisac21mission@gmail.com To see other videos by Dr. Kelly, please visit his channel at: www.youtube.com
mortgage-investment.blogspot.com Different Types of Mortgage Loans
Mortgage loan is a type of loan taken wherein a property is used as a security or collateral for the repayment of that loan. Although the property has been mortgage you still retain the rights and responsibility of the property as long as you continue your payments. But incase, you are not able to keep your end of the agreement and default in your payments then the lending company has the right to take over the property.
There are basically two types of mortgage loans, the adjustable rate mortgage and the fixed rate mortgage. But recent developments in the lending market have given birth to several types of mortgage loans where there is more flexibility being applied. These are the Interest-only loans, and the specialty mortgage loans.
The fixed rate mortgage maybe the oldest type of loans but it is considered as the best type of mortgage loan.
. You father and great grand father are probably familiar with this type of mortgage loan. The fixed rate mortgage loan has a fixed interest rate in the entire duration of the loan and the payments are equally distributed into monthly payments plus fixed interest rate. It neither increase nor decrease in the whole duration of the loan. This can be taken as a 15 year, 20 to 30 years loan with fixed interest rate. Since the interest rate is locked in a set rate, this means that it cannot increase thus, you are protecting yourself from the effects of rising rate mortgage. And if the rates go down you will always have the option of refinancing in order to avail of the lower rates without the fear of being caught in the increasing rates.The adjustable rate mortgage usually offers a lower initial interest rate, wherein your initial payments are lower.
But after the initial payment option is over, the adjustable rate mortgage will be adjusted. Wherein if the interest rate is increase so are your payments.  It is important to take note that since payments and interest rates can increase, you need to have an income that can sustain the change.The interest only mortgage loans actually refer to an option that is made available to the owners to make an interest only payment scheme and at a certain period of time only. This option lowers the amount of your payment and may add flexibility to your payment options. But the problem is when the time set for the option runs out you might find yourself in a difficult situation and find it hard to catch up with your payments.
In the types of mortgage loans, there is a new type added to serve the special needs of customers this is the specialty mortgage loan types: The Streamlined K Mortgage loan, and the Reverse Mortgages. The Streamlined K mortgage Loan is a FHA program that provides funds to borrowers to repair a home by putting the funds into one loan. Money to be borrowed maybe limited, but it is easier to obtain and requires less paperwork. The reverse Mortgages are open to any individual above 62 years old and has enough equity. The process is the lender makes monthly payments to the borrowers, instead of the borrower making the monthly payments to the lender. This is done as long as the borrower is a resident of the home.
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