Conventional. A mortgage loan that is not insured or guaranteed by the government, the interest rate does not adjust during the life of the loan, and the loan amount does not exceed $417,000.
Jumbo. A conventional mortgage with a loan amount that is higher than $417,000. This type of loan typically has a higher interest rate and may require a great down-payment.
Interest Only. A conventional mortgage where the monthly payment is comprised of only the interest payment, calculated at the interest rate on the outstanding principal balance. Upon maturity of the initial loan term, the principal amount of the loan is either due in full or amortized over the remaining term of the loan.
Adjustable Rate Mortgage. A mortgage with an interest rate and payment that changes periodically over the life of the loan based on the change in a specific financial index. These loans often have features that allow the interest rate to be fixed for a specified period of either 3, 5, 7 or 10 years and thereafter adjusts periodically based on an index.
VA Mortgage. A loan guaranteed by the Veterans Administration and is only available to veterans of the armed forces. This type of loan is generally available up to 100% loan to value with a maximum loan amount of $417,000.
FHA Mortgage. A loan insured by the Federal Housing Administration which usually required a low down payment but has a maximum loan amount determined by location of the property.
Balloon Mortgage. A loan which is amortized for a longer period than the term of the loan. Usually this refers to a thirty year amortization and a five year term. At the end of the term of the loan, the remaining outstanding principal on the loan is due. This final payment is known as a balloon payment.
Bridge Loan. A second trust that is collateralized by the borrower's present home allowing the proceeds to be used to close on a new house before the present home is sold. Also known as (swing loan).
USDA Loan. A mortgage insured by the US Department of Agriculture only offered in rural area's that can be up to 100% loan to value.
HELOC. A home equity line of credit loan is a line of credit with a specified maximum amount based on the amount of equity you have in your home.