The oldest type of a mortgage loan which is still prevalent is the fixed rate mortgage. These mortgages are available for terms from 10 years to 30 years. The rates on these mortgages are fixed for the term of the mortgage.
An adjustable rate mortgage on the other hand has rates that vary according to the interest rates prevalent in the market. The rates go up when the market interest rates go up and the rates go down when the market interest rates go down.
Veteran’s affairs loans on the other hand are mortgage loans given by the department of veteran’s affairs to people or spouses of people who have served in the armed forces. The terms and condition of the veteran loans are dependent on the years of service with the armed forces. The best part of these loans is that you do not have to make any down payment.
Federal housing administrative loans are backed by the federal government These loans are more popular with first time home buyers since the criteria for eligibility for these loans is much less stringent than mortgage loans from other institutions. Also the down payment on these loans is usually much less than any other mortgage loans.
Another type of mortgage loan that is available is the interest only mortgage loan. In this type of a loan that you only pay the interest on the loan, but the interest is calculated in a way that it includes the interest and the loan amount. These types of mortgages though are only available for a certain length of time.