There are lots of different types of mortgage loans out there and trying to determine which the best fit is for you can more often than not seem like a daunting task.

Mortgage Loan Types:

1. Fixed Rate Mortgage Types
   These types of loans are the most dominant in the market. These days you can choose from anywhere between a ten year all the way up to a fifty year fixed rate mortgage that locks you in at the interest rate that you received your initial mortgage with.


• FHA Loans
  An FHA mortgage loan is the type of loan that is specifically insured by our government through special mortgage insurance that is added into the cost of the loan. If you happen to be a first time buyer that is looking for a mortgage, these types of loans provide you with the best protection simply because the initial down payment is very little and your credit scores tend to not be relevant.


• VA Loans
  A VA loan is another type of government loan that is only available to our veterans that have served in our countries armed forces. The requirements for these types of loans will depend a lot on the year of service that you were in. One of the biggest advantages to these types of loans is that the person borrowing the money does not need to have a down payment and the loan is guaranteed to you.


• Interest Only Mortgage
  A lot of the time people will be confused by these types of loans because the name of them can at times be a little misleading. The reality is that these types of loans are built in with the option that the borrower can only make a payment on the interest of the loan if they would like to for a limited period of time. Sometimes however, these loans will require a balloon payment for the rest of the loan at the end of the limited interest only period.

2. Option ARM Mortgage Types

The Option ARM loan is a difficult type of loan to explain. They are adjustable rate mortgages by nature which means that the interest rate that is attached to the loan will fluctuate over the duration of the loan. These types of loans however can give you several different types of payment options on the other hand if you are looking for flexibility.


• Combo Mortgage Loan Types
  This type of loan essentially contains two loans in one, a first mortgage and a second mortgage. These mortgages can either be adjustable rate mortgages or the fixed rate mortgage varieties and is typically used when the borrower wants to avoid paying for private mortgage insurance due to putting less than twenty percent of a down payment on the loan.


• Adjustable Rate Mortgage Types
  These are common loans that have their interest rates change over different periods of times. The period of times depend on the type of ARM loan that you get and can be anything from monthly or yearly.


• Mortgage Buydowns
  A mortgage buydown is when a person that is getting a loan would like to have a lower interest rate at first. The interest rate can be lowered because you would be paying additional fees to have the rate lowered.


3. Specialty Mortgage Loan Types


• Streamlined-K Mortgage Loans
  This type of program will grant you with the ability to gain funds to fix up a home if you would like to and that money is rolled into the cost of the loan itself. These loans require less paperwork and are easier to get than other fixer upper type loans that are available to consumers.


• Equity Mortgage Loan Types
  You would typically take out a home equity loan in order to receive cash from the equity that has been built up on your property. These loans can be fixed rate, adjustable rate, or a line of credit that you can utilize to borrow funds as you see fit.