What are the three types of mortgages?

The three main types of mortgages are fixed-rate mortgages, adjustable-rate mortgages (ARMs), and interest-only mortgages. Fixed-rate mortgages have a constant interest rate and monthly payments that remain the same throughout the loan term, typically 15 to 30 years. ARMs have interest rates that can change periodically based on market conditions, which can lead to fluctuating monthly payments. Interest-only mortgages allow borrowers to pay only the interest for a set period, after which they must start paying down the principal, often resulting in higher payments later on.