Last updated: October 2026 · Editorial standards A reverse mortgage lets homeowners aged 62 or older convert a portion of their home equity into cash — without selling the home or making monthly mortgage payments. Instead of you paying the lender each month, the lender pays you (or makes funds available). The loan balance grows…
Buying an existing home and building one from scratch are financed entirely differently. A standard mortgage uses the existing property as collateral — the lender knows exactly what they’re securing. A construction loan funds a home that doesn’t exist yet, in phases, as it’s built. The risk profile is different, the process is different, and…
An interest-only mortgage lets you pay just the interest on your loan for a fixed initial period — typically 5 to 10 years — before converting to a fully amortizing payment that includes principal. During the interest-only period, your loan balance doesn’t decrease at all. This creates a significantly lower payment in the early years,…
A jumbo loan is any mortgage that exceeds the conforming loan limit set by the Federal Housing Finance Agency — $806,500 for a single-family home in most US counties in 2025. In high-cost counties (parts of California, New York, Hawaii, and others), the limit is higher, up to $1,209,750. Any loan above those limits is…