A loan insured by the federal Housing Administration open to all qualified home purchasers. While there are limits to the size of FHA loans, they are generous enough to handle moderate-priced homes almost anywhere in the country.

Requires a small fee (up to 3 percent of the loan amount) paid at closing or a portion of this fee added to each monthly payment of an FHA loan to insure the loan with FHA. On a 9.5 percent $75,000 30-year fixed rate FHA loan, this fee would amount to either $2,250 at closing or an extra $31 a month for the life of the loan. in addition, FHA mortgage insurance requires an annual fee of 0.5 percent of current loan amount, the more years the fee must be paid.

Mortgage loan made by an approved lender and guaranteed by the Department of Veterans Affairs. VA loans are made eligible to veterans and those currently serving in the military, and can have lower down payment than other types of loans.

A premium of up to 2 percent (Depending on the size of the down payment) paid on a VA-backed loan. On a $75,000 30-year fixed-rate mortgage with no down payment, this would amount to $1,406 either paid at closing or added to the amount financed.

Any loan that meets the criteria and limits set forth by the largest buyers of loans, Fannie Mae or Freddie Mac.

Secondary financing that consists of a revolving line of credit secured by a lien junior to a mortgage.

A loan in real estate property that is used to secure or guarantee the amount borrowed. Sometimes referred to as a second mortgage or borrowing against your home. The loan allows you to tap into your home’s built-up equity, which is the difference between the amount your home could be sold for, and any claims held against it. People often use a home equity loan for home improvements or to pay for a new car. A home equity loan is a good way to borrow money for two main reasons. First, the interest rate is usually one of the lowest loan rates a borrower can get. Also, the interest you pay on the loan is usually tax-deductible. But taking out a home equity loan also means the lender can take possession of the home if the loan isn’t repaid. This is why some people decide to not borrow against their home, and may decide to take out a personal loan. But for many borrowers, a home equity loan can be the best loan option. Your best loan option is the loan that best meets your needs.

A loan with a fixed rate for the first 1 year that has a rate that changes once each year for the remaining life of the loan. Because the interest rate can change after the first year, the monthly payment also changes.

A loan with a fixed rate for the first 10 years that has a rate that changes once each year for the remaining life of the loan. Because the interest rate can change after the first 10 years, the monthly payment may also change.

A loan with a fixed rate for the first 2 years that has a rate changes once each year for the remaining life of the loan. Because the interest rate can change after the first 2 years, the monthly payment may also change.

A loan with a fixed rate for the first 3 years that has a rate that changes once each year for the remaining life of the loan. Because the interest rate can change after the first 3 years, the monthly payment may also change.

A loan with a fixed rate for the first 5 years that has a rate that changes once each year for the remaining life of the loan. Because the interest rate can change after the first 5 years, the monthly payment may also change.

A loan with a fixed rate for the first 7 years that has a rate that changes once each year for the remaining life of the loan. Because the interest rate can change after the first 7 years, the monthly payment ay also change.

The payment is calculated over a started terms and the balance must be repaid or refinanced at the end of the 5th year.

The payment is calculated over a started terms and the balance must be repaid or refinanced at the end of the 7th year.

A loan with the same interest rate and payment over the entire 10 year life on the loan. As one of the shorter loan terms available, 10 year fixed loans offer lower lifetime interest payments than similar loans with longer terms, but you also have a higher monthly payment.

You generally pay a lower interest rate with a 15 year loan. You will pay less interest and build equity quickly.

The 20 year fixed loan is a good way to have fixed payments and shorter the term of your loan. You will build equity faster, pay less interest, and own your home sooner. Your monthly payments will be higher since the term is shorter.

A loan with the same interest rate and payment over the entire 25 year life of the loan. As one of the longer terms.

“Interest only” loans give borrowers a different payment option. this option allows the borrower to make payments of interest only for a set period, usually 5 or 10 years for a 30 years fixed rate loan or 5 years for a 5/1 adjustable rate loan. After that period, the payments will adjust to include principal and interest at an amount that allows the loan to be paid off over the remaining term. The interest only option is usually considered when a borrower:

• Needs lower payments at the beginning of the mortgage, but will be able to make higher payments later.

• Wishes to invest the saving of early lower payments in higher returning investments.