What are some of the different types of mortgage programs?

There are several types of adjustable rate and fixed rate mortgage loans. Here are some of the more common loans:

- 30-year fixed rate mortgage

This is a conventional mortgage which provides for a fixed interest rate and level payments for the 30-year life of the loan.

- 15-year fixed rate mortgage

The 15-year loan is a conventional mortgage in which the borrower will pay fixed monthly payments for the life of the loan. With a 15-year loan, payments are higher than a 30-year loan, but the loan is paid off much faster.

- 1, 3, 5, 7, 10 adjustable rate mortgages

These types of mortgage programs allow you to carry a fixed interest rate for a specified amount of time. Once that time is up, you will assume an adjustable rate for remaining life of the loan. For example, if you choose a 3 year adjustable rate mortgage, you would have a fixed interest rate for the first three years of the loan and an adjustable rate for the remaining years.

- 10/1, 7/1, 5/1, 3/1 treasury ARMs

These loans provide for a fixed interest rate for a specified amount of time. After that you pay a variable interest rate with annual adjustments. For example, if you selected a 10/1 Treasury ARM loan, you would have a fixed interest rate and fixed monthly payments for the first 10 years of the loan. The remaining life of the loan would assume a variable rate annually.

- 3-year, 1-year, 6-month treasury ARMs

This type of loan applies adjustments to the interest rate payments in various ways. For example, if you selected the 6-month option, your interest rate would adjust every six months. In comparison, if you selected the 3-year option, your interest rate would adjust every 36 months.

- Jumbo loan programs

These mortgages allow you to borrow more than an amount set by the Federal National Mortgage Association. As of January 1, 1999 any loan over $240,000 is considered a Jumbo Loan.

- Conventional loan programs

Any loan that allows you to borrow within the amount set by the Federal National Mortgage Association. Currently, loans under $240,000.