There are different types of mortgages. Here are some of the main types of mortgages. In rates closed loan, the rates of a product remains the same throughout the duration of the term and in variable rates mortgage, the loan rate is based on the prime rate of national bank.
Conventional mortgage is one with a loan to value that is less than or equal to 75% of the market value, no premium is added to the loan amount while if a loan to value exceeds 75% of the market value then it is insured mortgage and the premium is added to the loan amount.
There are many factors that can affect the current mortgage interest rates. When demand for the mortgage is high the lenders charge higher interest rates and when the demand is low then, the rates are reduced to attract the buyers. Reverse mortgage is for the retired persons for make them live in their homes and live comfortably.
There are three main types of reverse mortgages: single purpose mortgages, home equity conversion mortgages and proprietary mortgages. The home equity mortgage is expensive than the single purpose mortgage. A propriety mortgage is handled by a private lending company.