Mortgage Loan Types - part 1

by Diana Valo

The word "mortgage" (method of using property as security for payment of a debt) is quite frequent in our life, but not all of us know that there are different types of mortgage loans. There are two main types of mortgage loans - fixed rate mortgage or FRM and adjustable rate mortgage or ARM.
A fixed rate mortgage (FRM) has the same interest rate and monthly payment throughout the term of the mortgage. The payment is calculated to payoff the mortgage balance at the end of the term. The most common terms are 15 year and 30 years, but also there are biweekly and convertible mortgages. Let's take a look on the most popular 15 and 30 year fixed rate mortgages.

The 15-year fixed rate mortgage gives permission to house owners to own their homes free and clear in half the time and for less than half the total interest costs of the traditional 30-year loan. The loan's term is shortened by the 10 percent to 15 percent higher monthly payments.

Read the end of
Mortgage Loan Types

Related Mortgage Loan Articles:

1% Mortgage Loan
This article summarizes how payment option mortgage loans work.

4 Tips About No Documentation Mortgage Loans
You can get a mortgage loan without having to prove income, assets, employment, or other factors. Many lenders off the "No Doc" option to borrowers.

15 Year Mortgage Loans
A 15 year mortgage loan is a tool to pay off your property faster.

Hard Money Mortgage Loans
What are hard money mortgage loans? How do you use them?

Types Of Mortgage Loans - The Basics
In the past, homebuyers more or less had limited mortgage loan options. These days, there are more options than you can shake a stick at, but here's a primer on the basics.

Related Mortgage Loan Questions:

Other resources for Mortgage Loan

Mortgage Loan?
When my Fiance and I go for a mortgage loan will they look at both our incomes and credit score? And what are the determining factors for a loan officer to give you a loan?
read answers...

Mortgage loan?
how much mortage loan can a family get with a household income (husband and wife) of 000 p.a. We live in Chicago IL
read answers...

Mortgage Loan?
The Young family is purchasing a 0,000 house with a VA mortgage. The bank is offering them a 25-year mortgage with an interest rate of 9.5%. They have ,000 invested that could be used for a down payment. Since they do not need a down payment, Mr. Young wants to keep the money invested. Mrs. Young believes that they should make a down payment of ,000. a) Determine the total cost of the house with no down payment & b) total cost, if they make a down payment of ,000. c)Mr. Young believes that the ,000 investment will have an annual rate of return of 10% compounded quarterly. Assuming that Mr. Young is right, calculate the value of the investment in 25 years. d) If the Young’s use the ,000 as a down payment, their monthly payments will decrease. Determine the difference of the monthly payments in parts (a) and (b).
read answers...

Mortgage loan?
is it possible to get mortgage loan with collections on your credit report
read answers...

Mortgage Loan Calculator?
Is there a standard and known method of how to calculate mortgage ?
read answers...

Back from Mortgage Loan Articles
to California Mortgage Articles Directory

   California Mortgage
   Home Page

   Mortgage Companies
    Mortgage Lenders
    Mortgage Brokers

   Home Mortgage Loan
    Home Equity Mortgage
    Home Loan Application

   Mortgage Loan Rate
    Best Online Rate
    Current Mortgage Rate
    Low Rate Mortgage

   Real Estate Mortgage
    First Mortgage
    Second Mortgage
    Reverse Mortgage
    Refinance Mortgage
    Bad Credit Mortgage
    Jumbo Mortgage Loan

   Mortgage Information
    Mortgage Quote
    Mortgage Lead
    Mortgage Calculator
    Mortgage Broker License
    Mortgage Tips Blog

   Mortgage Articles