• Fixed Rate Loans - Both interest rate and payment do not change over the term of the loan. Loans can be amortized over 10, 15, 20, 25, 30, and 40 years. The fixed rate program allows you to have the same rate regardless of the market fluctuations.
   
• Fixed Rate Balloons - Both interest rate and payment remain the same until the loan is due. Typically, the entire loan amount is due in either 3, 5, or 7 years. The advantage of these programs is that they tend to have lower rate because the entire balance must be paid off or refinanced at the end of the term.
   
• Adjustable Rate Mortgage (ARM) - Both interest rate and payment remain the same for a fixed period of time, usually 1, 3, 5, 7, or 10 years. At the end of that period, the rate can rise at fixed intervals. The amount the rate can rise, the margin, is predetermined. The intervals are normally 1, 3, 6, or 12 months. Typically, there is a cap on the margin, which determines the highest the rate could ever go. The advantage of an adjustable rate is that it allows you to get lower rate for a known period of time. A borrower should determine if they would be better off with a Fixed Rate, Fixed Balloon Rate, or an Adjustable Rate.

Types of Loans

• Conforming Loans - Loan amounts that conform to government service standards as determined by Fannie Mae & Freddie Mac. These loan amounts are $227,150 or below.
   
• Jumbo (Non-Conforming) - Loan amounts above $227,150.
   
• Investment Properties (Non-Owner Occupied) - These homes are purchased for investment reasons and are not the owner's place of residence at any time during the year. Financing for these properties can be achieved via a conforming or non-conforming program.
   
• B, C, D Credit - A person can still get a loan even without perfect credit. There are special programs, which people with sub-prime credit can qualify (not A+ credit).
   
• No Document or Low Document Loans - In certain situations, it is difficult or not possible for borrowers to show a bank their income on paper. Under these circumstances, a program called NIV or No Income Verification may be used. The borrower must have good credit and equity, but need not show any income or limited income information. Typically, a self-employed person is going to use this type of program.
   
• Purchases - The previously mention programs can all be used in purchasing a house. The borrowers should evaluate which program is best for them. There are various other programs available in the mortgage industry besides the ones mentioned above.
   
• Cash-Out Refinances - A borrower can get cash out of the equity in their home while simultaneously refinancing. Cashing-Out can be done with most of the described programs.
  
   
• Rate/Term Refinancing - Refinancing which is done to lower the borrowers' interest rate or to eliminate some years of their mortgage. Refinancing a 30-year mortgage to a 15- year mortgage will eliminate thousands of dollars of interest over the long-term of a loan.