Fixed rate loans Interest rate and payments remain the same over the term of the loan. Normally offered for 10, 15, 20 and 30 years.
Fixed Mortgages Home Loans balloon Interest rate and payments remain the same until the loan is due, usually 5 or 7 years at which time the entire unpaid balance becomes due and payable. This is usually the lowest of the interest rates offered due to the short commitment from the lender. Also you need to pay attention to the APR for this type loan as even a small costs amortized over a short period will make the effective rate relatively high.

Fixed rate-
rollover/

extendable

Interest rate and payments remain the same until the adjustment period, usually 5 or 7 years. The interest rate and payment is then adjusted reflecting a predetermined margin added to a current index at the time of the extension. The rollover (extension) is conditional. Normal conditions would be: 1.Borrower still lives in the property. 2.Borrower's payments are and have been current 3.An index hadn't risen past a predetermined ceiling. (Check with your broker/lender for these and other possible conditions for extension).
Fixed to adjustable Interest rate and payments remain the same over a "fixed period", usually 1, 3, 5, 7, or 10 years. The interest rate and payments then fluctuate to a predetermined margin added to a current index. There is a maximum that the interest rate can fluctuate. The adjustment periods are usually 1, 3, 6, or 12 months.
Adjustable rates Interest rate and payments remain the same until each of the adjustment periods, usually each 1, 3, 6 or 12 months. There is normally a maximum that the interest rate can fluctuate each period and over the life of the loan.
Adjustable rates
possible negative 		Interest rate and payments remain the same until each of the adjustment periods, usually 1 or 3 months. There is a maximum that the interest rate can fluctuate. It is possible to make a payment that is less than the interest due, thereby increasing the amount of the loan balance.
Graduated Payment Usually considered a "fixed rate loan" although the payment changes from a "more affordable" payment to a higher payment over the first couple years of the loan period. As the interest rate is the same throughout the loan the first years payments may not cover the actual interest owed, therefore the loan may negatively amortize.
Buy down This type loan is actually a variable rate in that the interest rate is lower the first years of the amortization period. This is done for easier qualification and more
affordable payments the early years of home ownership. This differs from the GPM above in that the payments always cover the interest owed and reduce the balance. Note that there is an additional fee to "buy down" a home loan.
Loan to Value *There are loans available without mortgage insurance, but usually at slightly higher interest rates.
Mortgage Insurance Required
Conforming and jumbo
loans at or under 80%		 no
Conforming and jumbos
over 80%		 yes
Cash out refinance
loans at or under 75%		 no
Cash out loans over 75% yes
Low down payments as
low as 3%		 yes
General Notes
More than 1 unit Loans are available for 1 to 4 unit structures. Single unit "conforming" limit =$252,700, Duplex "conforming" limit=$323,400, Triplex "conforming" limit=$390,900 and Fourplex "conforming" allowable limit=$485,800.
Jumbos are all amounts over the above.
Non Owner occupied 1-4 units held for investment. Rates are normally higher for this type of property due to the higher default rate.
2nd mortgages There are 2nd trust deed (mortgages) available and will go as high as 125% of the value of your home.
No document loans Loans are available that require little or no documentation. These loans are offered at a higher rate and less of a loan to value (LTV).
Less than A credit
(sub prime)		 Most lenders offer program for less than perfect credit. The severity of the problem will dictate the rate, loan to value (LTV) and origination costs . Make sure and shop.
Some broker/lenders
do business in more
than one state.		 There are many very successful broker/lenders that maintain a single state office address yet are licensed to do business in multiple states. These sources often offer the best rates and prices because of the lack of extra overhead.
VA home loans. The Veteran's Administration will guarantee loans for those men and women who have or are serving in the military. Up to 100% of the home's purchase price can be financed. There are strict limitations on fees that can be charged. For more information the VA.
FHA home loans. A government guarantee program for 1st time home buyers. Liberal qualifying terms make this an attractive program. Ask your broker the details or FHA.