Loan Programs

Today, there are numerous loan programs offered by various lenders. The loan programs enable more homeowners and homebuyers to qualify for a mortgage. These loan programs come with many different characteristics. Below you will find some of the more popular and lesser known home loans available to borrowers.

The 15-year Fixed Rate Mortgage is another very popular loan program. It is most preferred by self occupied home owners because the 15-Year Fixed Rate loan offers one of the fastest ways to build equity in the home, and thereby pay off the mortgage in a much shorter time.

The most popular loan program is the 30 Year Fixed Rate Mortgage. This loan is for borrowers that plan on living in a home longer than 7 years. They have the comfort of knowing that their payment will stay the same over the life of the loan.

If you are looking for a loan program with some flexibility in your monthly mortgage payment you may want to consider a Pay Option ARM loan or an interest only loan. Both of these programs offer much lower monthly payments than your traditional ARM's and fixed rate home mortgage loan programs. Consult a mortgage professional for more information on how these loan programs work or for more information or options about other loan programs as well.

If you know that you may only be in the home a short period of time you may want to consider an Adjustable Rate Mortgage (ARM) instead. Most of the ARM's offered carry a fixed interest rate for the first 3,5,7 or even 10 years. After this time has passed you the interest rate will adjust based upon the terms of your contract, but typically every 6 to 12 months. In some cases you will be able to get a better interest rate on an ARM when compared to a 30 year fixed rate mortgage.

If you have experienced credit issues you might only qualify for a short term Adjustable Rate Mortgage. These "fix-it" loans will remained as a fixed rate for the first two or three years and then switch to an adjustable rate.