If you are a first time buyer, do you know the different types of mortgages there is? Well today is your lucky day. We have the “fixed-rate mortgage”. Which means that your interest rate stays the same until the mortgage is fully paid for. The monthly payments are equal in amount for the duration of the mortgage. The length of this mortgage may vary between 10, 15 or 20 years but the most popular one is 30 years, which makes your payments the lowest.
Secondly, you have the “adjustable-rate mortgage”. This loan is the opposite of the fixed rate loan, due to the interest rate that can be changed from year to year.
Third is the “interest only jumbo loan”. This loan gives you the option of paying the interest rate only for the first few years of the loan. This loan would last five, seven or ten years. After that, the loan rate will adjust annually.