Fixed Rate Mortgages
The traditional fixed rate mortgage is the most common type of loan programs, where
monthly principal and interest payments never change during the life of the loan.
Adjustable Rate
Mortgages (ARM)
Adjustable Rate Mortgages (ARM)'s are loans whose interest rate can vary during
the loan's term. These loans usually have a fixed interest rate for an initial period
of time and then can adjust based on current market conditions.
Hybrid ARMs
Hybrid ARM mortgages, also called fixed-period ARMs (3/1 ARM, 5/1 ARM, 7/1 ARM,
10/1 ARM), combine features of both fixed-rate and adjustable-rate mortgages.
Balloon Mortgages
Balloon mortgages have a note rate that is fixed for an initial period of time,
and then the remaining principal balance is due at the end of the term.
Reverse Mortgages
Reverse Mortgage is a type of home equity loan that allows the borrower to convert
some of the equity in their home into cash while retaining home ownership.
Graduated Payment Mortgages
Graduated Payment Mortgage is a loan where the payment graduates (increases) annually
for a predetermined period (e.g. five or ten years), and then becomes fixed for
the duration of the loan.