Mortgages, in my opinion, have an objective definition and a subjective one. Enjoy this journey into the dry for some, fascinating for others types of mortgages explained one by one until we get all twenty-seven of them done!
\nThe objective definition of \u201cmortgage\u201d is a financial tool that enables first-time homebuyers and investors, like you and me, to purchase real estate using only a small portion of their own money.
\nThe subjective definition of \u201cmortgage\u201d is relative to the person you are speaking with.
\nTo a first-time homebuyer, a mortgage is a 30-year fixed FHA loan with a 97% loan to value and close to the lowest interest rate that the market offers.
\nTo a real estate investor, a mortgage can be a 5\/1 adjustable-rate mortgage with a rate that changes every 12 months along with the market and converts to a fixed rate after the fifth year.
\nThe reason mortgages are subjective is because there are so damn many types of them! If you have clicked the link to this article, you\u2019ve come to the right spot to learn about them all.
\nHere is a list of the 27 different types of mortgages that are out there.<\/p>\n