Compare Mortgage Rates icon

Compare Mortgage Rates

Find Mortgage Lenders icon

Find Mortgage Lenders

Types of Mortgage Loans

There are a number of loan types available to today’s mortgage consumer. In efforts to keep up with the frequently changing economy, lenders are continuously coming up with new programs to attract homeowners of many types. The type of loan program you choose is probably the most important step in the mortgage loan process and it is vitally important that you understand the different type prior to making a commitment.

Some of the most popular loan types are:

Conventional Loans - Conventional loans are loans that are secured by government sponsored entities (in today's climate they are now government run entities) also known as GSE's such as Fannie Mae and Freddie Mac.

Jumbo Loans - Loans which are more than the limits set by Fannie Mae and Freddie Mac are called jumbo loans.

Interest Only Loan - An interest only mortgage is a scheduled monthly mortgage payment that consists of interest only.

Payment option ARM - A payment option ARM is an adjustable-rate mortgage that allows you to choose among several payment options each month.

Fixed Rate Mortgages - The major advantage of fixed rate mortgages is that the monthly payment amount is predictable for the life of the loan.

Adjustable Rate Mortgage - Adjustable Rate Mortgages (ARMs) have become one of the most popular and effective tools for helping some prospective homebuyers achieve their dream of homeownership. Click here to learn more.

Refinance Loans - Many borrowers use a refinance to either shorten the term of the mortgage or to reduce the monthly payment.