Buyers who might benefit from ARMs are those who are confident their incomes will increase steadily over the coming years or those who plan to sell their homes in a few years and therefore aren t concerned about potential long-term rate increases. Balloon mortgages can function like either fixed or adjustable rate mortgages for the first several years. But once the designated time period ends, the borrower owes the remaining balance on the loan in a lump sum. In some cases the option to refinance the remaining balance is available. Housing industry experts recommend balloon mortgages to buyers who plan to sell their homes within a few years and can pay off the balloon payment with proceeds from the sale of the house or by refinancing to a longer-term loan.
Various lenders offer special mortgages that require specific criteria for qualification.
One such mortgage is the green mortgage. Consumers are able to benefit from environmentally responsible construction which includes lower operating costs, reduced maintenance and increased durability through appropriate mortgage options. If you are interested in determining if you qualify for a specialized mortgage type, check with several lenders to find out what types of mortgages they offer. Government insured or guaranteed loans Federal Housing Administration loans. With an FHA-insured loan, a homebuyer can make a down payment of as little as 3 percent.