Mortgages are loans used to purchase real estate. Consumers typically use them to buy homes, while business owners can get mortgages for commercial properties. The type of mortgage you choose affects your monthly payment, interest costs, and financial flexibility. It’s crucial to research your options carefully.

Fixed-rate mortgages have the same interest rate for 15 to 30 years. Pros include stable monthly payments for easy budgeting. Cons include higher initial interest rates compared to adjustable-rate mortgages. Ideal for buyers who value stability or plan to stay in their homes long-term.

Adjustable-rate mortgages (ARMs) have changing interest rates. Pros include lower initial rates and potential savings if rates remain low. Cons include unpredictable monthly payments and higher interest costs over time if rates increase. Ideal for those planning to sell or refinance before rates adjust.

FHA loans are government-backed mortgages with flexible credit requirements and smaller down payments than conventional loans. Pros include easier qualifications and 3.5% down payments. Cons include mandatory mortgage insurance increasing costs. Ideal for first-time buyers or those with low credit scores.

VA loans are backed by the Department of Veterans Affairs, requiring no down payment or private mortgage insurance for veterans. Pros include favorable terms and multiple loan types. Cons include eligibility restrictions. Ideal for eligible veterans or military members.

USDA loans guarantee home loans for rural and suburban buyers meeting income and location criteria. Pros include no down payment, low interest rates, and flexible credit requirements. Cons include strict eligibility for rural areas and income limits. Ideal for buyers in eligible rural areas with low incomes.

Jumbo mortgages exceed conforming limits set by Fannie Mae/Freddie Mac, easing purchase of luxury or high-cost city homes. Pros include access to expensive homes. Cons include stricter credit requirements, higher interest rates, and larger down payments. Ideal for those needing loans surpassing conforming limits.

Read more at Yahoo Finance: These are the various types of mortgages