ISO Realty, Rexburg Real Estate Agents, Idaho Falls, St Anthony , Rigby , Ashton
  • Home
  • MLS Search
  • Agents
  • Buying
  • Selling
  • FAQs
  • Tools
  • Blog
    Login
    208-360-0252

    Sign in to your account

    Need to reset your phone number?

    Don't have an account with us?

    Click here to sign up.

    What is a Mortgage?

    A mortgage is a loan that is used to purchase a piece of real estate, typically a home. The property serves as collateral for the loan, which means that if the borrower defaults on the loan, the lender can take possession of the property.

    When you take out a mortgage, you typically agree to make monthly payments to the lender over a period of several years, usually 15 or 30 years. These payments consist of both interest, which is the cost of borrowing the money, and principal, which is the amount of the loan that you are paying back.

    In most cases, the interest rate on a mortgage is fixed, meaning it remains the same over the life of the loan. However, some mortgages have adjustable interest rates, which can change over time based on market conditions.

    When applying for a mortgage, lenders will typically consider factors such as your credit score, income, and debt-to-income ratio to determine whether or not you qualify for a loan and what the terms of the loan will be.

    Once the loan is paid off, the borrower has full ownership of the property, which is known as having a mortgage free property.

    It is important to note that there are different types of mortgages like; Fixed rate, Adjustable rate, FHA, VA, etc, each with different terms and rates to suit different scenarios and preferences.

    What types of Mortgage are there?

    There are several different types of mortgages that a borrower can choose from, each with its own set of terms and conditions. Some of the most common types of mortgages include:

    Fixed-rate mortgages: These mortgages have a fixed interest rate that remains the same for the life of the loan. This means that your monthly mortgage payments will always be the same, making it easier to budget and plan for the future.

    • Adjustable-rate mortgages (ARMs): These mortgages have an interest rate that can change over time, usually in response to changes in the market. The interest rate is typically fixed for a certain period of time at the beginning of the loan, after which it will adjust based on a specified index. This means that your monthly mortgage payments can increase or decrease over time.

    • FHA loans: FHA loans are backed by the Federal Housing Administration and are designed to help first-time homebuyers or those with less-than-perfect credit purchase a home. They typically require a smaller down payment and have more lenient credit and income requirements than conventional loans.

    • VA loans: VA loans are backed by the Department of Veterans Affairs and are available to eligible veterans, service members, and surviving spouses. These loans typically have more favorable terms than conventional loans, such as no down payment or private mortgage insurance (PMI) requirements.

    • USDA loans: These are government-backed loans that are intended to encourage home ownership in rural and low-income areas.

    • Jumbo loans : Jumbo loans are mortgages that exceed the conforming loan limits set by the Federal Housing Finance Agency. This typically means that they are larger than $510,400 for single-family homes.

    • Hybrid loans: which include a combination of two or more of the above types of mortgages, like 5/1 ARM which has a fixed rate for 5 years after that the rate will adjust annually.

    It's worth noting that different types of mortgages may have different requirements and qualifications, so it's important to compare your options and speak with a lender to determine which type of mortgage is best for you.

     

     

     

    Address Search

    Like or Share
    Loading likes...

    Our Agent Reviews

    Real Estate Finance FAQs

    • Finance a Idaho Home
    • What is the Lending Process?
    • What is a loan officer?
    • What is a Mortgage?
    • What is a mortgage underwriter?
    • What are mortgage interest rates?
    • What is a mortgage interest rate buydown?
    • What is a lender pre-approval letter?
    • What is a lender loan commitment letter?
    • What is RESPA
    • What is a Truth in Lending Disclosure?
    • What is a Lender's Credit Disclosure?
    • What is the difference between a TIL and CD?
    • What is Home Affordable Refinance Program?
    • What is the Idaho Housing and Finance Association
    • What is Housing and Urban Development
    • What are government-backed loans?
    • What is a FHA Loan
    • Can I use a personal loan to buy a house?
    • What is seller financing?
    • What is a financial contingency?
    • What is the Federal Fair Housing Act

    Title and Escrow FAQ's

    • What is a Title Company?
    • What is an Escrow Officer
    • What is a Title Officer?
    • What is Title Insurance?
    • What is a real estate closing?
    • How is real property transferred in Idaho?
    • What is a settlement Statement?

    Realtor Association FAQ's

    • Explain the Realtor Organization
    • What is the National Association of Realtors
    • What is the Idaho Association of Realtors?
    • What is a local Realtor Association?
    • Do I need a Realtor?
    • Realtor vs Real Estate Agent

    Idaho Real Estate Commission FAQ's

    • What is the Idaho Real Estate Commission?
    • What is the Idaho Agency Disclosure Brochure?

    Real Estate Transaction Faqs

    • What is a home sell contingency?
    • What is a title and survey contingency?
    • What is a home inspection contingency?
    • What is an appraisal contingency?
    • Can I request a reappraisal of a home?

    Idaho Real Estate Topics

    • Buying a Home in Idaho
    • Determining Property Value
    • Home Owner Property Tax Exemption
    • How does demand affect Idaho Real Estate
    • How to prepare to move into a new home.
    • Primary Residence vs Rental
    • Real Estate Photography
    • Sell an Idaho Home
    • What is Home Ownership?
    • What are the types of residential property?
    • What is a CMA?
    • What is a Homeowners Association (HOA)?
    • What is the Idaho Homeowners Association Act?
    • What is house flipping?
    • What is Internet Data Exchange (IDX)
    • What is a MLS?
    • What is a non-disclosure state?
    • What is a real estate showing?
    • What is a RETS Server?
    • What is the best way to price my home?
    • What is the real estate market?
    • What is home based Permaculture?
    • What is investment property?
    • What is real estate capital appreciation?
    • What is a Real Estate Investment Trust?

    Eastern Idaho Real Estate

    • Bingham County
    • Bonneville County
    • Fremont County
    • Jefferson County
    • Madison County
    • Teton County

    Property Types

    • Condos and Townhomes
    • Idaho Horse Property
    • Land
    • Recreational Property
    • Single Family Homes
    • Waterfront Property

    Eastern Idaho Cities

    • Ammon
    • Ashton
    • Idaho Falls
    • Island Park
    • Rexburg
    • Rigby
    • Shelley
    • Sugar City
    • St Anthony
    • Ucon
  • Home
  • MLS Search
  • Sustainability
  • Featured Properties
  • Contact Us
  • FFHA
  • DMCA
  • Real Estate Agents in Southeast Idaho - ISO Realty Logo

    360 Partridge Lane
    REXBURG, ID 83440-5346
    208-360-0401
    Sales@ISORealty.com

     

    Brokered by:
    ISO Realty of Idaho is brokered by Silvercreek Realty Group

    © All Rights Reserved R C Canning Enterprises LLC 2022

    Research Real Estate

  • Buyer Interview
  • IDX Real Estate Websites by
    • Accessibility • Terms • Privacy