Fixed Rate Mortgage
The traditional fixed-rate mortgage has a fixed monthly principal and interest payment with payments remaining the same for the term of the loan. This may be a good choice if you plan to stay in your home for several years. If you plan to move within a few years, then adjustable-rate loans are usually cheaper.
Adjustable Rate Mortgages (ARM)
The adjustable rate mortgage has an initial mortgage interest rate that may be lower than current fixed-rate loans. You have the option to choose from a number of adjustable-rate loan products. This may be a good choice if you intend to stay in your home for a shorter period of time.
Government Mortgages: FHA and VA Mortgages
The Federal Housing Administration (FHA) and the Department of Veteran Affairs (VA) offer mortgage programs in all states. You can choose from both fixed-rate and adjustable-rate mortgages. Features in the mortgages include flexible qualification guidelines for eligible borrowers, and are helpful for eligible borrowers with limited funds to use as a down payment.
The Jumbo Mortgage is an option for consumers who wish to borrower more than the conforming loan limit of $417,000.