Mortgage Loan Types

There are many types of mortgages. The best mortgage for you depends on your needs. Common home loans include: fixed interest rate loans, adjustable rate loans and interest-only loans.

Fixed Rate Mortgage - available with a wide variety of amortization periods. These include:

• 10 Year Fixed
• 15 Year Fixed
• 20 Year Fixed
• 25 Year Fixed
• 30 Year Fixed
• 40 Year Fixed

Adjustable Rate Mortgage (ARMs) - feature an interest rate that adjusts according to a specific schedule. ARMs may be subject to specific restrictions on interest rate changes. Common types include:

• 1/1 ARM
• 3/1 ARM
• 5/1 ARM
• 7/1 ARM
• 10/1 ARM
• 2/28
• 3/27
• 5/25

Interest-Only Mortgage - allows borrowers to make low monthly mortgage payments by only requiring interest and not a portion of the principal during the interest-only period. Interest-only mortgages may have a fixed interest rate or an adjustable interest rate (Interest-Only ARM). Interest-Only ARMs may have an interest-only periods that is the same length or longer than the fixed-rate period. Common types of interest-only mortgages include:

• 30 Year Fixed Interest-Only Mortgage
• 20 Year Fixed Interest-Only Mortgage
• Interest-Only 3/1 ARM
• Interest-Only 5/1 ARM
• Interest-Only 7/1 ARM
• Interest-Only 10/1 ARM
• 3/1 ARM (10 Year Interest-Only Period)
• 5/1 ARM (10 Year Interest-Only Period)
• 7/1 ARM (10 Year Interest-Only Period)

Balloon Mortgage - does not fully amortize over the term of the loan, resulting in a large (balloon) payment of the remaining principal at maturity. Common types of balloon mortgages include:

• 30/3
• 30/5
• 30/7
• 30/15

Second Mortgage

Government Loan Programs (FHA/VA)