Use the following table to determine which type of mortgage loan each definition/example best represents

Use the following table to determine which type of mortgage loan each definition/example best represents. Mortgage Loan Type Definition/ Example The type of mortgage home owners might want if they believe interest rates will decrease substantially over the life of the mortgage. The type of mortgage first-time home owners might want if they just got their first job out of college and want to make small payments early on and larger payments that level off over the life of the mortgage. The type of mortgage that has an interest rate below the market rate and where the lender receives a portion of any increase in the home value over the life of the loan. The type of mortgage that is given out when there is already a mortgage on a home and that typically has a higher interest rate than the initial mortgage. Adjustable- Rate O O o O Growing- Equity O O o o Graduated- Payment O O o O Balloon- Payment O O O O Shared- Appreciation O O o o Fixed- Rate O O O O Second O O o o