An adjustable rate mortgage, also known as ARM (A-R-M), is a loan that has a variable interest rate over the life of the loan. This means your monthly mortgage payment can increase or decrease with changes in interest rates.

Amortized (uh MAWR tized) mortgages are loans in which you repay your debt through regular payments that both reduce your principle and cover the interest due each month.

Assumable mortgages are home loans that can be assumed, or taken over, by another borrower. Once the loan is assumed by the buyer, the seller is no longer responsible for repaying it.

Balloon payment mortgages are fixed-rate home loans that require small monthly payments for a certain period of time and one large payment at the end of the loan term.

As a result of the Federal Community Reinvestment Act established in 1976, lending institutions have been given incentives to offer community loan programs that assist individuals and families living within the institution's lending area with the purchase of affordable housing.

Conventional loans are mortgages that aren't insured or guaranteed by any agency of the state or federal government. They're generally obtained through private lending institutions, like banks or credit unions.

If you're finding it difficult to qualify for a home loan on your own because of lack of a credit history or a blemished one, one option you might consider is a co-signed mortgage.

FHA- (F-H-A) insured loans are mortgages administered by The Federal Housing Administration. The FHA neither builds homes nor lends the money itself. Rather, it insures approved lenders willing to offer these mortgages against foreclosure loss if you default on your loan.

Fixed-rate mortgages are loans in which the interest rate and your mortgage monthly payments remain fixed for the entire period of the loan. This type of loan remains the most popular home financing method, currently accounting for about two-thirds of all residential mortgages.

Graduated payment mortgages are loans that offer low initial monthly payments that gradually increase by a predetermined amount at predetermine times during the life of the loan.

Guaranteed Rural Housing loans are government-insured mortgages offered to rural residents who're unable to acquire conventional loans through private lenders.

As you shop for a mortgage to finance the purchase of your home, you generally want to avoid obtaining a high interest rate loan. Loans with a high interest rate ultimately result in you paying more total interest on the loan than a low-rate one.

Homeowners 62 years of age and older who have paid off their mortgages or have only small mortgage balances remaining are eligible to participate in what's known as a reverse mortgage program.

A second mortgage, as its name implies, is a second loan secured by the same property as a first mortgage. Second mortgages often consist of the same features of a traditional mortgage, though they tend to have shorter terms, usually ranging from five to 15 years.

Stated income loans are mortgages that don't require you to provide documentation of the amount of income you make. As a result, verification of income isn't a necessary factor to qualify for this type of loan.

VA-guaranteed loans are mortgages administered by The Veteran's Administration to those men and women who have or are serving in the military. With this type of loan, borrowers can finance up to 100 percent of the value of their home.