Types of Loans

Under each loan program offered, they will have multiple loan types to fit your needs:

1. 15 Year Mortgage— A fixed rate mortgage (FRM) is a mortgage loan where the interest rate on the note remains the same through the 15 years (180) months of the loan, as opposed to loans where the interest rate may adjust or "float."
2. 30 Year Mortgage— A fixed rate mortgage (FRM) is a mortgage loan where the interest rate on the note remains the same through the 30 years (360 months) of the loan, as opposed to loans where the interest rate may adjust or "float."
3. ARM (Adjustable Rate Mortgage) - a mortgage loan subject to changes in interest rates; when rates change, ARM monthly payments increase or decrease at intervals determined by the lender; the Change in monthly -payment amount, however, is usually subject to a Cap.
4. Assumable Mortgage— a mortgage that can be transferred from a seller to a buyer; once the loan is assumed by the buyer the seller is no longer responsible for repaying it; there may be a fee and/or a credit package involved in the transfer of an assumable mortgage.
5. Balloon Mortgage— a mortgage that typically offers low rates for an initial period of time (usually 5, 7, or 10) years; after that time period elapses, the balance is due or is refinanced by the borrower.
6. Commercial Loans— a bank loan issued for the use of a business, or to secure a property zoned as industrial.
7. Energy Efficient Mortgage (EEM) - an FHA program that helps homebuyers save money on utility bills by enabling them to finance the cost of adding energy efficiency features to a new or existing home as part of the home purchase.
8. Fixed Rate Mortgage (FRM) - A fixed rate mortgage (FRM) is a mortgage loan where the interest rate on the note remains the same through the term of the loan, as opposed to loans where the interest rate may adjust or "float."
9. Home Equity Loans— a mortgage on the borrower's principal residence, usually for the purpose of making home improvements or debt consolidation.
10. Interest Only Loans— a mortgage on which a payment consists of interest payments only, this is usually fixed for a period of time between 12 months and 120 months.  During that period, the loan balance remains unchanged.
11. Refinance— paying off one loan by obtaining another; refinancing is generally done to secure better loan terms (like a lower interest rate).
12. Rehabilitation Mortgage— a mortgage that covers the costs of rehabilitating (repairing or Improving) a property; some rehabilitation mortgages - like the FHA's 203(k) - allow a borrower to roll the costs of rehabilitation and home purchase into one mortgage loan.
13. Rural Property Mortgage— Flexible, long term loans designed for individuals wishing to purchase and/or improve a primary residence greater than five acres, on agriculture zoned land.
14. Second Loans— a loan taken against your home’s equity on which there is an existing primary mortgage. The home equity is used as collateral for the second loan.
15. Sub-prime Mortgages— is a type of loan granted to individuals with poor credit histories (often below 620), who, as a result of their deficient credit ratings, would not be able to qualify for conventional mortgages.