Fixed Rate Mortgage (Fixed):

Refers to a mortgage where the interest rate and the note is fixed for the term of the loan.

This type of loan is available through the following agencies:

The conventional limits for this type of loan is as follows:

The typical terms for these types of mortgages are as follows:

• 30 Year
• 25 Year
• 20 Year
• 15 Year
• 10 Year

Adjustable Rate Mortgage (ARM):

A loan with an interest rate that is adjusted periodically based on changes in a specified index after the term of the initial fixed in period. For example, a 5/1 ARM's interest rate will not change for the first five years, but then can increase or decrease according to the index it is tied to.

This type of loan is available through the following agencies:

• Federal National Mortgage Association (Fannie Mae) - Conventional
• Federal Home Loan Mortgage Corporation (Freddie Mac) - Conventional
• Federal Housing Administration (FHA)
• Veterans Association (VA)

The conventional limits for this type of loan is as follows:

The typical terms for these types of mortgages are as follows:

• 1/1
• 3/1
• 5/1
• 7/1
• 10/1

Option Adjustable Rate Mortgage (Option ARM):

A loan with an interest rate that is adjusted periodically based on changes in a specified index. This type of mortgage delivers multiple payment options each month, such as a fixed 30 year, fixed 15 year, Interest Only and Negative Amoritization.

This type of loan is available by all through all agencies:

• Federal National Mortgage Association (Fannie Mae) - Conventional
• Federal Home Loan Mortgage Corporation (Freddie Mac) - Conventional

High-Cost Mortgage / High Balance Mortgage:

A mortgage larger than the conventional limit set by the Federal National Mortgage Association and Federal Home Loan Mortgage Corporation established in specific geographic areas.

This type of loan is available through the following agencies:

• Federal National Mortgage Association (Fannie Mae) - Conventional
• Federal Home Loan Mortgage Corporation (Freddie Mac) - Conventional
• Federal Housing Administration (FHA)
• Veterans Association (VA)

The conventional limits for this type of loan is as follows:

The typical Fixed terms:

• 30 Year
• 25 Year
• 20 Year
• 15 Year
• 10 Year

The typical Adjustable Rate Mortgage terms:

• 3/1
• 5/1
• 7/1

Jumbo Mortgage:

A mortgage larger than the conventional and high-cost limit set by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. Depending on the geographic area, these mortgage amounts are greater than the amounts stated above.

This type of loan is available through the following agencies:

• Federal National Mortgage Association (Fannie Mae) - Conventional
• Federal Home Loan Mortgage Corporation (Freddie Mac) - Conventional
• Federal Housing Administration (FHA)
• Veterans Association (VA)

The typical Fixed terms:

• 30 Year
• 25 Year
• 20 Year
• 15 Year
• 10 Year

The typical Jumbo Mortgage terms:

• 3/1
• 5/1
• 7/1

Interest Only Mortgage:

A mortgage in which, for a set term, only the interest on the principal balance is paid, with the principal balance unchanged during that period. After this time, the principal balance is amortized for the remaining term. The type of mortgage can be offered as a conventional, high-cost or jumbo loan.

This type of loan is available through the following agencies:

• Federal National Mortgage Association (Fannie Mae) - Conventional
• Federal Home Loan Mortgage Corporation (Freddie Mac) - Conventional

The typical Fixed terms:

• 30 Year
• 25 Year
• 20 Year
• 15 Year
• 10 Year

The typical Interest Only Mortgage terms:

• 3/1
• 5/1
• 7/1

Balloon Mortgage:

A short-term fixed-rate mortgage with fixed monthly payments for a set number of years followed by one large final balloon payment ("the balloon") for all of the remainder of the principal. Typically, the balloon payment may be due at the end of 5, 7, or 10 years. Borrowers with balloon loans may have the right to refinance the loan when the balloon payment is due, but the right to refinance is not guaranteed.

This type of loan is available through the following agencies:

• Federal National Mortgage Association (Fannie Mae) - Conventional
• Federal Home Loan Mortgage Corporation (Freddie Mac) - Conventional

Home Equity Line of Credit (HELOC):

A loan with an interest rate that is adjusted periodically based on changes in the prime index. This type of loan does not advance the entire lump sum upfront, but allows the amount needed to be drawn when you need it - like a credit card. This loan is typically located in second lien position and has multiple payment options.

Home Equity Loan (HELOAN):

Refers to a mortgage where the interest rate and the note is fixed for the term of the loan. This loan is typically located in second lien position.

Rehabilitation Mortgage:

The mortgage proceeds are used to improve or repair a property through a single mortgage. This type of mortgage can be used to purchase or refinance a property.

This type of loan is available through the following agencies:

• Federal National Mortgage Association (Fannie Mae) - Conventional
• Federal Home Loan Mortgage Corporation (Freddie Mac) - Conventional
• Federal Housing Administration (FHA)
• United States Department of Agriculture (USDA)