Real Estate Law – What Are The Different Types Of Mortgages To Consider When Buying A House?
- The most common form of a mortgage is a fixed rate mortgage where the bank will offer you a mortgage on the current rate and will guarantee that rate for a certain number of years.
- There is also a mortgage called adjustable rate, which is a variable rate and changes from time to time. These are also commonly referred to as ARM’s.
- They can be beneficial for someone who does not plan on staying in the house for a long period of time.
- When you apply for a mortgage and are putting down a small down payment, the government requires the borrower to pay for PMI or Private Mortgage Insurance to protect the bank.
This short informational real estate law video was provided by Arnold Drucker, an experienced Jackson Heights Real Estate Lawyer.