Understanding Mortgage Types

What is the first step you should take when deciding on a mortgage?

• Choose a lender

• Determine your budget

• Find a real estate agent

• Select a neighborhood

What is a key benefit of a conventional mortgage?

• No down payment required

• Available only for first-time buyers

• Lower borrowing costs

• Guaranteed by the government

Which type of mortgage is suitable for high-end properties?

• FHA loan

• Jumbo mortgage

• USDA loan

• VA loan

Which government agency backs FHA loans?

• Federal Housing Administration

• Department of Veterans Affairs

• U.S. Department of Agriculture

• Federal Reserve

What is a unique feature of VA loans?

• Available only in rural areas

• No mortgage insurance required

• High interest rates

• Requires a 20% down payment

What is a primary advantage of a fixed-rate mortgage?

• Interest rates decrease over time

• No interest payments

• Payments vary each month

• Predictable monthly payments

What is a potential risk of an adjustable-rate mortgage?

• No initial interest payments

• Interest rates may increase

• Fixed payments for the loan term

• Requires a high down payment

What is a characteristic of an interest-only mortgage?

• Requires a 30% down payment

• Interest rates are fixed for the entire term

• Lower initial payments

• Payments include both principal and interest from the start

What happens at the end of a balloon mortgage term?

• The loan is forgiven

• A large payment is due

• Interest rates are reduced

• The loan term is extended

Which resource can help you track current mortgage rates?

• Real Estate Weekly

• Bankrate Dashboard

• Mortgage Times

• Loan Tracker