With a 3-2-1 buyout mortgage, the borrower pays a lower interest rate for the first three years in exchange for an upfront payment to the lender.
The interest rate is reduced by 3% in the first year, by 2% in the second year and by 1% in the third year. For example, a 5% mortgage will only charge 2% in the first year.
After the foreclosure period ends, the lender charges the full interest rate for the remainder of the mortgage.
Foreclosures are often used by sellers, including home builders, as an incentive to help buyers afford to buy property.
2/28 adjustable rate mortgages (ARM) offer an initial fixed rate for two years, after which the interest rate is adjusted semi-annually for another 28 years.
An 80-10-10 mortgage consists of two mortgages: the first is a fixed-rate loan of 80% of the value of the home; the second - 10% as a loan secured by equity capital; and the remaining 10% as a down payment in cash.
A movable property loan is secured by a movable item or movable property that is used to purchase the loan. The creditor has the right of ownership of the movable property.
The holiday act literally releases the parties to the transaction from previous obligations, such as payments on the terms of the mortgage, because the loan is repaid.
An FHA 203(k) loan is a government-secured mortgage loan, which is essentially a construction loan that finances both the purchase and renovation of a home.