FIXED RATE
The most common type of loan option, the traditional fixed-rate mortgage includes monthly principal and interest payments which never change during the loan’s lifetime.
ADJUSTABLE ARM
Adjustable-rate mortgages include interest payments which shift during the loan’s term, depending on current market conditions.
INTEREST ONLY
Interest Only loans are offered on fixed rate or adjustable rate mortgages as wells as on option ARMs. At the end of the interest only period, the loan becomes fully amortized, thus resulting in greatly increased monthly payments.