Loan Types Overview
It seems like there are dozens of different loan types, how can you cut through all of the jargon and choose the right one for you?
We’ve laid out the key features of each type here so you can easily understand how they work and which one(s) you find appealing.
-
Interest Rate/Payment Types:
- Fixed Rate Mortgages
- Adjustable Rate Mortgages (ARMs)
- Hybrid
- Interest-Only
- Convertible
- Negative Amortization
-
Balloon Mortgages
- 7/23, 5/25 Convertible
- Deferred Interest
-
Other Types:
- Conventional vs. Government Guaranteed
- Conforming vs. Jumbo
- Assumable vs. Not
- Prime vs Subprime
- Seller Financing/Wraparound
-
Loan Terms:
- 30 Years
- 15 Years