Online mortgage brokers offer a range of mortgage products to suit the needs of different borrowers. Here are some of the most common types of mortgage products that online mortgage brokers offer:
- Fixed-rate mortgages: A fixed-rate mortgage is a type of mortgage where the interest rate remains the same for the entire repayment term. This means that the borrower’s monthly payments remain the same, regardless of any changes in interest rates. Fixed-rate mortgages are popular among borrowers who prefer predictable payments and want to avoid any surprises in their monthly budgets.
- Adjustable-rate mortgages: An adjustable-rate mortgage (ARM) is a type of mortgage where the interest rate can fluctuate based on market conditions. Typically, ARM interest rates start off lower than fixed-rate mortgages but can increase over time, resulting in higher monthly payments. ARM mortgages are popular among borrowers who are confident that interest rates will remain stable or decrease over time.
- Jumbo mortgages: A jumbo mortgage is a type of mortgage that exceeds the limits set by the government for conventional mortgages. Jumbo mortgages are available to borrowers who need to finance high-priced properties or those with high levels of debt-to-income ratios. These mortgages often have higher interest rates and stricter eligibility requirements.
- FHA loans: FHA (Federal Housing Administration) loans are a type of government-backed mortgage designed to help first-time homebuyers or borrowers with lower credit scores qualify for a mortgage. FHA loans often require lower down payments and have more lenient eligibility requirements than conventional mortgages.
- VA loans: VA (Veterans Affairs) loans are a type of government-backed mortgage available to eligible military service members and veterans. These loans often have lower interest rates, no down payment requirements, and no private mortgage insurance (PMI) requirements.
- Refinance mortgages: Refinance mortgages are a type of mortgage product that allows borrowers to replace their existing mortgage with a new one. Refinancing can help borrowers lower their interest rates, reduce their monthly payments, or shorten their repayment terms. Online mortgage brokers offer a range of refinance mortgage products, including cash-out refinances and rate-and-term refinances.