This is the traditional mortgage loan, where monthly principal and interest
payments are paid in full every month and never change throughout the
life of the loan. These days this loan is offered in 10, 15, 30, 40,
and even 50 year terms.
Adjustable Rate Mortgages (ARM)
Adjustable Rate Mortgages or an (ARM) is one of the most popular loans
on the market today, traditionally these loans have a fixed interest
rate for an initial period of time. After an adjustment period the rate
may go up or down based on current market conditions.
Option Arm Mortgage
An Option Arm Mortgage is currently the most popular mortgage option
for a new homeowner. The premise is simple you have four options to choose
for your payment each month
Principal and interest payment based on a 30 or 40 year term.
Principal and interest payment based on a 15 year term.
Interest only payment.
Minimum Payment amount usually around 1-2%
Interest Only Mortgages
An Interest only mortgage simply put is a mortgage that you do not repay
principal for a certain amount of time.
Balloon Mortgages
A Balloon Mortgage will have a note rate that
is fixed for an initial period of time, after that time the remaining
principal balance is due.
Reverse Mortgages
A Reverse Mortgage is a loan in which you pull out home equity and convert
it into cash while you retain home ownership.
Graduated Payment Mortgages
A Graduated Payment Mortgage is a loan in which the payment increases
annually for a predetermined period of time (5 or 10 years), after that
period the note rate becomes fixed for the remaining duration of the
loan.
