One of two loan types called FHA or VA loan. These loans are partially backed by the government and can help veterans and low-to-moderate income families afford homes. The advantages of these types of loans in that they often have a lower interest rate, are easier to qualify for, have lower down-payment requirements, and can be assumed by someone else if the home is sold. Many mortgage bankers can obtain these type of loans for you.
A type of mortgage where the monthly payments start low but increases by a fixed amount each year for the first 5 years. The payment shortfall or negative amortization is added to the principal balance due on the loan. The advantages of this type of loan is a lower monthly payment at the beginning of the loan term. The disadvantages are typically a slightly higher rate than a traditional, fixed-rate mortgage loan and lenders usually require a larger down payment. In addition, the negative amortized amount increases the balance due on the total loan which can be a problem if the value of the property declines.
Total income, before deducting taxes and expenses. The scheduled (total) income, either actual or estimated, derived from a business or property.
A type of mortgage where the monthly payments start low but increase by a fixed amount each year for the entire life of the loan as compared to 5 years with a Graduate-Payment Mortgage. The advantage of this type of loan is that the loan can usually be paid off in a shorter duration than a traditional, fixed-rate loan. The disadvantage of this loan is that the payment continues to increase yearly.