Popular Loan Programs
Choosing a Loan Program
The right type of mortgage for you depends on many different factors.
Conventional and Jumbo Loans
Conventional loans are secured by government sponsored entities or GSE's such as Fannie Mae and Freddie Mac.
Fixed Rate Mortgages
A loan program where your monthly principal and interest payments never change.
Adjustable Rate Mortgages (ARMs)
These loans generally begin with an interest rate that is 2-3 percent below a comparable fixed rate mortgage, and could allow you to buy a more expensive home.
Introductory Rate ARMs
Most adjustable rate loans (ARMs) have a low introductory rate or start rate, some times as much as 5% below the current market rate of a fixed loan.
Standard ARMs and the Differences
Various types of adjustable rate mortgages.
Cost of Funds Index (COFI)
This index is used to determine the interest rate for some types of ARMs.
London InterBank Offered Rate (LIBOR)
This index is used to determine the interest rate for some types of ARMs.
Balloon Mortgages
Balloon loans are short term mortgages that have some features of a fixed rate mortgage.
Graduated Payment Mortgages (GPMs)
The GPM is an alternative to the conventional adjustable rate mortgage, and has a fixed note rate and payment schedule.