Quick Guide to Mortgage Loan Types

Looking for the right mortgage? Here’s a fast breakdown of common loan options to help you choose what fits best:

• Fixed-Rate Mortgage (FRM): Steady monthly payments and interest rate for the life of the loan—simple and predictable.

  
  

• Adjustable-Rate Mortgage (ARM): Starts with a lower rate that can change over time based on the market.

  
  

• Hybrid ARMs (3/1, 5/1, etc.): Fixed rate for a few years, then becomes adjustable. Great if you plan to move or refinance early.

  
  

• FHA Loans: Government-backed, low down payment—ideal for first-time buyers.

• VA Loans: For eligible veterans and service members—no down payment and great terms.

  
  

• Interest-Only Loans: Pay just the interest for a set time, then switch to full payments. Useful in certain financial situations.

  
  

• Balloon Loans: Low payments now, big final payment later. Best for short-term plans.

  
  

• Reverse Mortgages: For homeowners 62+, convert home equity into cash while staying in your home.

  
  

• Graduated Payment Loans: Start with low payments that increase over time—good if your income will grow.

  
  

Choosing the right loan depends on your goals and finances. This guide is a great starting point for your mortgage journey.

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