Mortgage that doesn’t meet the Qualified Mortgage (QM) criteria established by the Consumer Financial Protection Bureau (CFPB), often used for unconventional borrowers.

Mortgage arrangement where the borrower or seller pays an upfront fee to reduce the interest rate temporarily, resulting in lower initial payments.

Program that combines a home purchase or refinance loan with funds to renovate or repair the property.

Revolving credit line secured by the borrower’s home equity, which can be used for various expenses.

Mortgage where the borrower pays only the interest for a specified period before beginning to pay both principal and interest.

Mortgage with a set interest rate for the entire loan term, providing stable monthly payments.

Loan program for eligible rural and suburban homebuyers with low to moderate incomes, offering low or zero down payment options.

Conventional FRMs are the most traditional type of mortgage loans. They feature a fixed interest rate and a consistent monthly payment amount throughout the loan’s term, typically 15 or 30 years. Borrowers opt for these loans when they prefer stable, predictable payments.

These loans are insured by the Federal Housing Administration (FHA) and are designed to help lower-income and first-time homebuyers. FHA loans often have more lenient credit and down payment requirements compared to conventional loans.

VA loans are provided to eligible veterans, active-duty service members, and their spouses. These loans are backed by the U.S. Department of Veterans Affairs and often require no down payment. VA loans typically offer competitive interest rates.

Refinance loans allow homeowners to replace their existing mortgage with a new one, usually to secure a lower interest rate, reduce monthly payments, or tap into home equity. Refinancing can be done with various loan types, including conventional, FHA, or VA loans.

Jumbo loans are used when the loan amount exceeds the conforming loan limits set by government-sponsored entities like Fannie Mae and Freddie Mac. They often have stricter credit requirements and higher interest rates due to their larger loan amounts.

These loans are intended for individuals looking to build a new home from scratch or make significant renovations to an existing property. They typically have short-term, interest-only terms during the construction phase and then convert to a traditional mortgage.

ARMs offer a fixed interest rate for an initial period, usually 3, 5, 7, or 10 years, after which the rate adjusts periodically based on market conditions. Borrowers may benefit from lower initial rates but should be prepared for potential rate increases in the future.

Reverse mortgages are designed for homeowners aged 62 or older. They allow homeowners to convert a portion of their home equity into cash, typically through monthly payments from the lender. Repayment is typically deferred until the homeowner moves out of the home or passes away.