MORTGAGE CALCULATOR AND LOAN TYPES
Mortgage Broker | Mortgage Lender
MORTGAGE BROKER
A mortgage broker acts as an intermediary who brokers mortgage loans on behalf of individuals or businesses.
MORTGAGE LENDER
A mortgage lender is a bank or financial company that lends money to borrowers to purchase a home.
LOAN TYPES
FHA
A Federal Housing Administration (FHA) loan is a mortgage that is insured by the Federal Housing Administration (FHA) and issued by an FHA-approved lender. FHA loans are designed for low-to-moderate-income borrowers; they require a lower minimum down payment and lower credit scores than many conventional loans.
FHA 203K
An FHA 203(k) loan is a type of government-insured mortgage that allows the borrower to take out one loan for two purposes – in particular, for home purchase and home renovation. conventional loans.
CONVENTIONAL
A conventional loan is a type of mortgage loan that is not insured or guaranteed by the government. Instead, the loan is backed by private lenders, and its insurance is usually paid by the borrower.
HOMESTYLE
The HomeStyle® Renovation mortgage provides a simple and flexible way for borrowers to renovate or make home repairs with a conventional first mortgage, rather than a second mortgage, home equity line of credit, or other more costly methods of financing.
CONSTRUCTION
A construction loan (also known as a “self-build loan”) is a short-term loan used to finance the building of a home or another real estate project.
VA
A VA loan is a mortgage loan that is backed by the U.S. Department of Veterans Affairs. These loans are available to people who are actively serving in the military or who have served and received an honorable discharge.
JUMBO
A jumbo loan (or jumbo mortgage) is a type of financing where the loan amount is higher than the conforming loan limits set by the Federal Housing Finance Agency (FHFA).
HOME EQUITY
A home equity loan, also known as a “home equity installment loan” or a “second mortgage,” is a type of consumer debt. Home equity loans allow homeowners to borrow against the equity in their residence.
REFINANCE
Loan refinancing refers to the process of taking out a new loan to pay off one or more outstanding loans.
BALLOON
A balloon loan is any financing that includes a lump sum payment schedule at any point in the term. It’s usually at the end of the loan.
COMBO / PIGGYBACK
Piggyback loans, sometimes called combo loans, are made up of two loans: A first mortgage based on 80 percent of the purchase price. A home equity line of credit that is piggybacked on top of the first mortgage.
INTEREST-ONLY
An interest-only mortgage is a type of mortgage in which the mortgagor (the borrower) is required to pay only the interest on the loan for a certain period. The principal is repaid either in a lump sum at a specified date, or in subsequent payments.
REVERSE MORTGAGE
SMALL BUSINESS LOAN
BANK STATEMENT LOAN
ADJUSTABLE RATE MORTGAGE
