Fixed-Rate Mortgage (FRM)

Adjustable-Rate Mortgage (ARM)

Interest-Only Mortgage

First Time Buyer Programs

This is the most popular mortgage. As the name suggest the interest rate of the mortgage remains the same through out the life of the mortgage. Due to the fixed rate nature of this mortgage the rate is very compare to the other types of mortgage. The monthly payments are always same and there is no tension about the sudden changes in the market.

This is very different from the FRM as it follows the present market interest rates which make the interest rate rise and fall according to the market trend. For the first few years you may enjoy low rates of interest as well as low monthly payments. It is true that you have to accept the high interest rate at the time when the interest will go up due to the changing market rates.

The only payment you have to make in this kind of mortgage is the interest, taxes and the insurance for this mortgage. The important point in this kind of mortgage is that you have to determine your house’s equity for which you have to depend on the local housing market.

This mortgage is designed in order to make things easier for the first time home buyers. This helps the new home buyers to enjoy a lower down payment. In this type of mortgage you need to have some security or income. There are government subsidized programs which charges "recapture tax" if you sell your house too soon.