If a Fixed Rate program fits your needs, then it is also good to consider some of the 15 year options. The first option is to have the loan set up on a 15-year amortization, which means the loan will be paid in full at the end of 15 years, instead of thirty. This has a significantly higher payment (due to the fewer years to pay it over) and a slightly lower interest rate. Thinking in terms of the yield curve discussion above under ARM the difference between these rates depends on the yield curve. Typically the forecast expectations of interest rate changes between 15 and 30 years away is difficult which is why they usually show little difference.

   Another 15 year option to consider is a 15-year balloon. The payment is still calculated as if you were paying over 30 years but the entire balance of the loan is due 15 years from the start of the loan. The risk here is obvious, that the borrower will have to pay off or refinance the remaining balance at the time of the balloon to avoid foreclosure. The short-term benefit is a lower interest rate and payment. The long-term risk that comes with refinancing is mitigated in part by the equity that will be created over those 15 years by making payments and normal home value appreciation. Additionally, some programs come with a conversion option to refinance if the loan has been paid as agreed in the first 15 years.

• Adjustable Rate Mortgages (ARM)
• Fixed Rate for 2 or 3 Years
• Fixed Rate for 30 years
• Fixed Rate for 15 years (open document)
• Hard Money Loan Financing  

Detailed Information (Credit Categories)

General Loan Program Descriptions

• Cash Out 
• Debt Consolidation Financing 
• Self-Employed Financing Options 
• Home Purchase Loan 
• Imperfect or Less than Perfect Credit 
• Mortgage Loan Refinance