California · Chapter 25 of 59

Types of Loans

Fixed-rate, adjustable-rate, interest-only, balloon, wraparound, purchase money, and hard money loans.

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Fixed-Rate Mortgages

A fixed-rate mortgage has the same interest rate for the entire loan term. Most common terms: 30 years, 15 years. Advantages: predictable payments, protection against rising rates. Disadvantages: higher initial rate than ARMs, less flexibility. The 30-year fixed is the most popular mortgage in the United States.

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