Green Bay Real Estate Agents, Desiree Wood, Matt Wood, Matthew Wood, Team Wood, The Wood Team. Serving Brown, Door, and Kewaunee Counties

Wisconsin Mortgage Corporation Reports: What does it mean?  Mortgages defined.

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0614-Word-Cloud-Share-imageWhether you’re a first-time homebuyer, a current homeowner or in the market for a new home, you may have a tough time sorting through mortgage terms discussed by real estate agents, lenders, real estate attorneys and other real estate professionals.

Here’s a glossary of the types of mortgages you need to know. (These are general terms: each mortgage is based on personal credit score/buying history.)

  • Fixed-rate mortgage. A fixed-rate mortgage locks the same interest rate over the entire term of the mortgage, usually 15, 20 or 30 years. This is one of the most popular types of loans because homeowners are locked in with their interest rate. When interest rates are low, fixed-rate mortgages are very affordable, offering homeowner’s lower monthly payments.
  • Adjustable-rate or variable-rate mortgage. An adjustable-rate or variable-rate mortgage offers a lower initial rate of interest than compared to a fixed-rate mortgage. After the first initial payment period, interest rates fluctuate over the life of the loan. An adjustable-rate mortgage is great for homeowners that might not stay in their houses for a long period of time, or for homeowners who are comfortable paying a lower monthly payment at first, but know that their payment could be higher in the future.
  • Federal Housing Administration loan. A Federal Housing Administration loan allows buyers to obtain a onetime low down-payment. A Federal Housing Administration loan is attractive to first-time homeowners and homeowners with less-than-perfect- credit — it only requires a down payment of 3.5%.
  • VA Loan. A VA loan is a guaranteed loan for eligible veterans, active duty personnel and surviving spouses of a person in the United States Military. A VA loan offers competitive rates, including no down-payment.  Eligibility for specific home-loan benefits may be determined by the length of service/service commitment.
  • Reverse mortgage. A reverse mortgage allows seniors to convert equity in their homes to cash, where they don’t have to pay back the loan and interest as long as their living in the home. This is attractive to homeowners because you still keep the title to your home, aren’t required to make monthly payments, and it doesn’t affect Social Security or Medicare benefits.


To learn more about mortgages, and to see what you qualify type of loan you qualify for, contact a Loan Officer at Wisconsin Mortgage Corporation today.



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