What is Baloon Mortgage Loan?

Balloon Mortgage Loans:A balloon mortgage is very similar to a fixed-rate mortgage, except the term (or duration) is shorter and the monthly payments are lower. However, a large payment (known as a “balloon payment”) is due at the end of the mortgage’s term.

What is a Bi-weekly Mortgage Loan?

Biweekly Mortgage Loans:Rather than making monthly payments, a bimonthly mortgage allows the borrower to make smaller payments every other week.

What is Blanket Mortgage Loans?

Blanket Mortgage Loans: The blanket mortgage is simply a single mortgage that covers multiple properties. It is used most frequently by commercial real estate developers.

What is a BuyDown Mortgage Loan?

Buydown Mortgage Loans: By using discount points, the borrower makes a lump-sum payment up front that reduces the interest rate on the mortgage loan. A temporary buydown will reduce the monthly payments for the first few years of the mortgage, while a permanent buydown will reduce the interest rate for the mortgage’s entire term.

Some other types of Mortgage Loans used across the World are

Hybrid Mortgage Loans:Similar to a convertible mortgage, a hybrid (or two-step) mortgage begins as a fixed-rate loan and converts into an adjustable-rate loan. However, the borrower has no say on when this conversion takes place. Hybrid mortgages are often referred to by numbers related to the terms of the loan. For example, a 23/7 loan would have a fixed rate for the first seven years, and then convert to an adjustable rate for the remaining 23 years. Sometimes, a hybrid mortgage is referenced by three numbers, such as a 30/5/5 loan. In this case, the loan is a 30 year mortgage that has a fixed rate for the first five years. After that, the rate will change every five years.

Interest-Only Mortgage Loans:An interest-only mortgage is set up so that the borrower only pays on the interest for a specified amount of time. After the initial period has elapsed, the borrower begins making payments on the principal and the remaining interest.

Pledged-Asset Mortgage Loans:With a pledged-asset mortgage, the borrower uses assets such as stocks, bonds, and mutual funds to finance the home. This eliminates the need for a down payment and for private mortgage insurance, since the loan is financed 100 percent.

Reverse Mortgage Loans:Specifically designed for retired senior citizens, the reverse mortgage allows borrowers to convert their home’s equity into cash to pay off the loan.

Shared-Appreciation Mortgage Loans:In a shared-appreciation mortgage (or SAM), the lender offers the borrower a lower interest rate in exchange for a share of the home’s future value.Simple-Interest Mortgage Loans:A simple-interest mortgage is similar to an adjustable-rate mortgage, except the interest rate is calculated daily rather than monthly. Although this ultimately results in the borrower paying more, the monthly payments are smaller in the short-run.

Wraparound Mortgage Loans:Sometimes, a seller will offer a house with a new mortgage that includes (or “wraps around”) an older, unpaid mortgage. The buyer makes mortgage payments to the seller who, in turn, uses the money to pay on the original loan. Since the wraparound mortgage is usually for a higher amount and interest rate than the original, this enables the seller to turn a profit. Wraparound mortgages are also known as overlapping or overriding mortgages