Fixed Rate Mortgages Adjustable Rate Mortgages (ARM) Hybrid ARMs (3/1 ARM, 5/1 ARM, 7/1 ARM, 10/1 ARM) FHA Loans VA Loans Interest Only Mortgages Components of an ARM Commonly Used Indexes for ARMs Balloon Mortgages Reverse Mortgages Graduated Payment Mortgages What kind of loan program is best for you?
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)'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 ARM mortgages, also called fixed-period ARMs, combine features of both fixed-rate and adjustable-rate mortgages.
FHA home loans are mortgage loans that are insured against default by the Federal Housing Administration (FHA).
The VA Loan provides veterans with a federally guaranteed home loan which requires no down payment. This program was designed to provide housing and assistance for veterans and their families, and the dream of home ownership became a reality for millions of veterans.
A mortgage is called “interest only” when its monthly payment does not include the repayment of principal for a certain period of time.
To understand an ARM, you must have a working knowledge of its components.
This is a list of the most commonly used indexes by ARM lenders.
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 Mortgage is a type of home equity loan that allows you to convert some of the equity in your home into cash while you retain home ownership.
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.
So what kind of mortgage is best for you? Fixed rate? Adjustable rate? Government loans? The truth is, there is no one correct answer.
Fixed Rate Mortgages
Adjustable Rate Mortgages (ARM)
Hybrid ARMs (3/1 ARM, 5/1 ARM, 7/1 ARM, 10/1 ARM)
Interest Only Mortgages
Components of an ARM
Commonly Used Indexes for ARMs
Graduated Payment Mortgages
What kind of loan program is best for you?