subject: Different Types of FHA Loans and Mortgages [print this page] Different Types of FHA Loans and Mortgages
Mortgage loans that are insured by the Federal Housing Administration or FHA are known as the FHA loans. Different types of loans that are insured by FHA are there. Different mortgage rates are applicable for different mortgage loans and they are based on the principles of fair lending.
Traditional Mortgages
Traditional mortgages with fixed rates are based on the principle of set time limit with specific interest rates. Its nature is that the rate of interests never changes and thus the mortgage payments remain constant over the entire period of mortgage. Only fluctuation could be in property taxes or homeowner's insurance plans. People that are desirous of having their own home for a long time span will prefer this type of loans.
Conventional Adjustable Rate Mortgages
Set for certain amount of times, the conventional adjustable rate mortgages do not have static interest rate and the rates continue to change over lifetime of loans. Mortgage interest remains static for the first two three years and thereafter it starts fluctuating and rising.
Hybrid Mortgages
Similar in nature to the adjustable rate mortgages, hybrid mortgages are different from the later in that the mortgage rates remain static for longer periods in comparison to the adjustable rate mortgages. Normally the interest rates remain static for the first ten years and then start fluctuating. It is one of the best mortgage plans for the people in fixed income groups.
Jumbo Fixed Mortgage Rates
Those who require mortgage financing of over $333,700 are usually set for life time of the loans. Interest rates are usually higher for such high dimension mortgage loans and could reach phenomenal dimensions if it is a second mortgage.
Balloon Mortgages
Balloon mortgages are a type of mortgage service where the benefactor makes small payments at the commencement of the mortgage and pays out the balance on some later date. People expecting large sums in future like post retirement benefits, will find this plan of mortgage loans better for them.
Relocation and Bridge Mortgage
Relocating mortgages are not refinance loans but are the loan used to relocate to new home while the existing home is on sale. Bridge mortgage is a home equity loan where the mortgagor pays for both the old and new house till the old one is sold out.
