Mortgage Types

If you intend to buy a house you will very probably have to take out a mortgage. But what type of mortgage should you choose? This is one of the most important decisions when taking out a mortgage. The right type of mortgage for you depends on many different factors:

• Your current financial picture. 

• How you expect your finances to change.

• How long you intend to keep your house.

• How comfortable you are with your mortgage payment changing. 

There are many different types of mortgages available. Each one is simply a different way of borrowing money to fund your house purchase or remortgage. The main types of mortgage are:

• Fixed Rate Mortgage (FRM) Or Fixed Mortgage

• Adjustable Rate Mortgage (ARM)

• Interest Only Mortgage

• Reverse Mortgage (RM)

• Balloon Mortgage

• Jumbo Mortgage Or Non-Conforming Mortgage

• Graduated Payment Mortgage (GPM)

• Convertible Mortgage or Reduction Option Loan (ROL)

• Second Mortgage

• Self Employed Mortgage

• Federal Housing Authority Mortgage (FHA) Or 
  Government Mortgage

• Rural Mortgage or Rural Housing services (RHS) or  Loans

• Veterans Affairs Loan (VA)

• Combo Mortgage Loan

• Bad Credit Mortgage