• 30 year fixed
• 25 year fixed
• 20 year fixed
• 15 year fixed
• 10 year fixed

• Monthly payments are fixed over the life of the loan
• Interest rate does not change
• Protected if rates go up
• Can refinance if rates go down

• 10/1 ARM
• 7/1 ARM
• 5/1 ARM
• 3/1 ARM
• 1 year ARM
• 6 month ARM
• 1 month ARM

• Lower initial monthly payment
• Rates and payments may go down if rates improve
• May qualify for higher loan amounts
• 30 year term, no balloon payment

• More risk
• Payments may change over time
• Potential for higher payments if rates increase

VA Loans (For Military Personal or Retiered Military Personal Only) 

• 30 Year Fixed
• 15 Year Fixed

• Purchase with no down payment
• No Monthly Private Mortgage Insurance (PMI)
• Low fixed rates

• Lower down payment
• Easier to qualify
• Lower rates may be available

• May be subject to income and property value limitations
• Some government subsidized programs may generate a recapture tax if you sell the house too soon
• Education courses may be required to qualify for these loans

USDA Loans

• No money down purchase loans
• No Monthly Private Mortgage Insurance (PMI)
• Streamline Refinance
• Good for borrowers who are purchasing a home outside of city limits with no money down
• Get cash back for improvements needed on that new home

• Have to purchase outside of city limits

• You have several payment options
• Lower monthly payments
• Qualify for a higher loan amount
• Qualify at the interest only payment
• Option to pay the full normal payment
• Interest only payments for up to ten years

• Higher rates
• Principal loan balance will not decrease during the interest only payment period
• Payment will be higher for the remaining term

• No out-of-pocket loan costs at closing
• Closing costs are paid from the lender rebate
• Less money required to close
• Refinance without increasing your loan amount

• Higher rates
• Higher payments
• Some lenders may have a short payoff penalty which is usually charged to the loan broker, but may be passed on to you
• Some require a prepayment penalty for the first one to five years

• Potential for reestablishing credit if you pay your mortgage on time
• When used for debt consolidation, you may be able to reduce your monthly debt payment

• Higher rates
• Terms may not be as favorable

• You only borrow what you need
• Pay interest only on what you borrow
• Flexible access to funds
• Interest may be tax deductible
• May be free of closing costs
• A good source for an emergency fund, if set up in advance
• Can be used for debt consolidation and lower payments
• Rates are usually lower than consumer loan or credit card rates

• Rates can change. The maximum interest rate can be relatively high
• Payments can change

• Fixed payments
• Interest may be tax deductible
• Get cash out for any purpose

• Higher interest rates compared to first mortgage
• Harder to refinance your first mortgage
• Interest is paid on the entire loan amount, compared to an equity line of credit