Question

mortgages: tutorial
ii les
fixed - rate mortgage adjustable - rate mortgage hybrid mortgage government - insured loan balloon mortgage conventional loan
pairs
the interest rate starts out low and then adjusts for the duration of the loan.
the monthly payments and interest rate remain the same for the entire duration of the loan.
the interest rate is initially fixed and then becomes adjustable after a period of time.
it typically requires a 20% down payment.
it requires a lower down payment, if any, for these fha, va, and usda loans.

Explanation:

Match each mortgage type to its defining characteristic based on standard mortgage terminology:

1. An adjustable-rate mortgage has an interest rate that starts low and adjusts for the loan's duration.
2. A fixed-rate mortgage has consistent monthly payments and interest rate for the full loan term.
3. A hybrid mortgage has an initial fixed rate that converts to adjustable after a set period.
4. A conventional loan typically requires a 20% down payment.
5. A government-insured loan (like FHA, VA, USDA) has low or no down payment requirements.

Answer:

• The interest rate starts out low and then adjusts for the duration of the loan. → adjustable-rate mortgage
• The monthly payments and interest rate remain the same for the entire duration of the loan. → fixed-rate mortgage
• The interest rate is initially fixed and then becomes adjustable after a period of time. → hybrid mortgage
• It typically requires a 20% down payment. → conventional loan
• It requires a lower down payment, if any, for these FHA, VA, and USDA loans. → government-insured loan