Types of Home Mortgage Loans

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Types of Home Mortgage Loans

We have gathered a wealth of information on the different types of mortgage loans to help you choose the home loan that's best for you.

The Different Types of Home Loans

On this website, you'll find pages and pages of advice on home loans. But there are two key mortgage lessons that are more important than anything else:

Lesson #1 - You need to determine your home-buying budget before you apply for a mortgage loan. Lesson #2 - You need to understand the difference between the two most common types of mortgages, the adjustable- and the fixed-rate mortgage loan. Do these two things first and foremost, and you'll have a much more successful home buying experience.

Do you know the pros and cons of the many different types of mortgage loans available these days? If not, use the articles below to improve your mortgage knowledge. Only when you understand the different types of home loans can you choose the one that's right for you.

Basic Types of Mortgages

The articles below explain the most common types of mortgage loans you may encounter as a home buyer. I recommend reading a few articles from this section before you delve into the specific types of mortgages in the articles on down the page.

Types of Home Loans - A Home Buyer's Guide
If you only read one article on this page, make it this one. We cover the different types of home loans in detail, with links to additional resources for each type of loan. It's a "must read" to be sure!

Top 9 Mortgages Explained! Find the Right Mortgage for You
Mortgage terms have you confused? Read on to find the mortgage rate that is right for your financial situation.

Understanding the Different Types of Mortgages
Confused by all the different types of mortgage loans? Want to know which type of mortgage loan is right for you? Then this is the article for you.

Low-Income Home Buying Programs
This page will help you understand low-income home buying programs, and will also point you to helpful resources where you can learn more.

Home Mortgage Buyers: Study the Big 3 Loan Types
To find the best mortgage loan for you, you should study the pros and cons of the three major types of mortgage loans.

First-Time Mortgage Buyers
Buying a home may be the fulfillment of a long-cherished dream, but the entire process of buying can be confusing if you are not well informed.

Mortgages - Types Of Interest Rate
The type of interest you wish to pay will depend on your circumstances and how much you are willing to pay every month. You'll learn in this article that not all interest rates are the same.

Traditional Mortgages are Back in Style
If you purchased your home using a risky adjustable rate mortgage, you might want to consider refinancing.

Fixed-Rate Mortgages

These articles explain the different pros and cons of a fixed-rate mortgage, which (as the name implies) is a mortgage loan that has a fixed / unchanging interest rate over the entire life of the loan.

Choosing Between Fixed Rate and Variable Rate Mortgage Loans
An important decision to make when shopping for a home loan is whether or not you want to have your interest at a fixed rate or at a variable rate.

Fixed Rate Mortgage Loans - Pros And Cons
There are many benefits and drawbacks to consider when deciding if a fixed rate mortgage is right for you. It is important to understand them.

Adjustable-Rate Mortgages

Perhaps you have heard about the ARM loan but aren't really sure how it works. These articles will educate you on all aspects of the adjustable-rate mortgage, also known as an ARM.

Adjustable Rate Mortgage Loans - The Basics
Adjustable rate mortgages (or ARMs) can help you finance the purchase of a home with lower interest rates. But you need to know the whole story.

Understanding the ARM Loan
The adjustable rate mortgage often confuses home buyers. But once you understand the basics of an ARM, it will all make more sense.

Adjustable Rate Mortgages - A Guide to the ARM
Many home buyers choose the ARM loan in order to save money during the first few years of homeownership. But later, these same homeowners run into trouble when the interest rate adjusts.

Balloon Loans

The balloon mortgage is a truly unique approach to home financing. But it can be financially dangerous for the first-time home buyer who does not fully understand it. These articles will give you a thorough understanding of the balloon mortgage loan.

Balloon Home Loans - Be Careful
These days, lenders provide loans tailored to many situations. Balloon loans are one such loan, but carry a serious downside if youÂ’re not careful.

Balloon Or Reset Mortgage Loans - Understanding The Basics
A balloon mortgage, also called a reset mortgage, offers lower interest rates with the option in 5 or 7 years to pay off the balance or resent the loan.

Government-Backed Loans

Mortgage loans that are insured by the U.S. government can help pave the way to home ownership for many home buyers. One of the primary advantages of such a loan is that it allows you to buy a home with a low down payment.

FHA Mortgage Loans - The Benefits of an FHA Mortgage
The Federal Housing Administration (FHA) insures mortgages to help low- to moderate-income families purchase their own home.

A Borrower's Guide to FHA Home Loans
The Federal Housing Administration (FHA) is a government program created in 1934 to make home financing available to more American families. Today, it's part of the Department of Housing and Urban Development (HUD). Basically, they insure home loans made by private lenders.

Why the FHA Loan is Good for First-Time Buyers
Every type of loan has certain advantages and disadvantages to it. After all, there is no such thing as a perfect financing tool. But with that being said, the FHA program is almost perfectly suited for first-time buyers. This article explains the reasons for this, and it also tells you how to apply for this program.

The VA Home Loan Program For Military Veterans
The federal government offers many benefits to men and women who serve their country. One of those benefits is the VA home loan program.

Interest-Only Loans

Interest-Only Home Loans
As the name implies, interest-only home loans are loans that include an option of only paying the interest every month. Read on to learn about them.

Interest-Only Mortgage Basics
Financing your home with an interest only mortgage can save you as much as 25% off your monthly mortgage payments. What is the downside of this type of mortgage and are the risks worth the savings?

Traditional Versus Interest-Only Home Loans
Now that homes sales have slowed and prices have leveled out, will the number of interest-only mortgages also decrease?

Other Types of Loans

Home Equity Loans
This is a popular financing tool for homeowners who want quick access to cash (often for educational costs, home improvement or debt consolidation. But there are some things you need to know before applying for an equity loan, and this article is a great place to start.

Consider a 15-year Mortgage
If you are dedicated to managing your money wisely, you should consider taking a 15-year mortgage. This article explains why.

Reverse Mortgage Loans for Senior Citizens
This type of loan is made against the value of your home, hence the "reverse" terminology. It's similar to a home equity loan but it has unique aspects. This lending tool has become increasingly popular among senior citizens in recent years.

Subprime Mortgage Loans - A Borrower's Guide
Subprime mortgage lending is a relatively new but fast-growing component of the mortgage industry. But buyer beware — subprime lending has been linked to the current rise in home foreclosures. Here's what you need to know.

Subprime Lending Crisis in the U.S.
This crisis of subprime lending has had far-reaching effects. It has also made it harder for poorly qualified home buyers to obtain mortgage loans. So let's take a closer look at the history, development and impact of the subprime mortgage crisis in the United States.

Are 40-Year Mortgages A Good Idea?
A recent analysis of the lending policy of the top 125 mortgage lenders found that approximately 30% were now offering mortgage terms of 40 years of more.

50-Year Mortgage Now Available
Mortgage lenders are offering a new product to assist home buyers in purchasing a home at an affordable monthly payment.

Understanding Jumbo Mortgages
If you are buying a home in a state with high prices, you know financing can be an issue. This brings up the issue of the jumbo loan.

Zero Down Mortgage Loans - First-Time Buyer Programs
A zero down mortgage is a great idea for a first time home buyer. Here is some information on obtaining a zero down mortgage loan.

First Time Home Buyer Loans
Due to the current state of the economy, the so-called first time home buyer loans are becoming a thing of the past. But don't be discouraged by this. While it may be hard to find a specific program that offers loans for first-time buyers, you can certainly qualify for a regular mortgage loan. Just don't expect special treatment from lenders in the current housing market.

Mortgage Modification Programs
There's a lot of talk about loan modification programs right now. There's also a lot of confusion and misinformation. So we created this page to help homeowners understand (A) what home loan modification is all about, (B) which lenders are offering these programs, and (C) where you can go to learn more about each program.

Getting a Home Loan in the 2009 Economy
Are there new rules for getting a mortgage loan in the 2009 economy? Yes and no. The guidelines that have applied to loan qualification in the past will apply in 2009 as well -- but they'll be more strictly enforced. Here's what you need to know about the so-called "new economy."

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