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| 40 Year Fixed |
| 30 Year Fixed |
| 15 Year Fixed |
| 7 Year ARM |
| 5 Year ARM |
| 3 Year ARM |
| 2 Year ARM |
| 1 Year ARM |
| Interest only |
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40 Year Fixed
A loan with the same interest rate and payment over the entire 40 year life of the loan. As one of the longer loan terms available, 40 year fixed loans offer lower payments, but you will pay more in interest over the life of this loan than a similar loan with a shorter term. |
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30 Year Fixed
The 30 year fixed is one of the most popular loans. Many people like the fixed interest rate and lower monthly payments. But since the term of the loan is long, you will pay more interest over the life of the loan.
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15 Year Fixed
You generally pay a lower interest rate with a 15 year loan. You will pay less interest and build equity quickly.
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7 Year ARM
A loan with a fixed rate for the first 7 years that has a rate that changes once each year for the remaining life of the loan. Because the interest rate can change after the first 7 years, the monthly payment may also change.
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5 Year ARM
A loan with a fixed rate for the first 5 years that has a rate that changes once each year for the remaining life of the loan. Because the interest rate can change after the first 5 years, the monthly payment may also change.
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3 Year ARM
A loan with a fixed rate for the first 3 years that has a rate that changes once each year for the remaining life of the loan. Because the interest rate can change after the first 3 years, the monthly payment may also change.
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2 Year ARM
A loan with a fixed rate for the first 2 years that has a rate that changes once each year for the remaining life of the loan. Because the interest rate can change after the first 2 years, the monthly payment may also change.
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1 Year ARM
A loan with a fixed rate for the first 1 year that has a rate that changes once each year for the remaining life of the loan. Because the interest rate can change after the first 1 year, the monthly payment may also change.
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Interest only
"Interest only" loans give borrowers a different payment option. This option allows the borrower to make payments of interest only for a set period, usually 5 or 10 years for a 30 year fixed rate loan or 5 years for a 5/1 adjustable rate loan. After that period, the payments will adjust to include principal and interest at an amount that allows the loan to be paid off over the remaining term. The interest only option is usually considered when a borrower:
- Needs lower payments at the beginning of the mortgage, but will be able to make higher payments later.
- Wishes to invest the savings of early lower payments in higher returning investments.
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Unless otherwise indicated, these APR calculations are based on the following: Conforming loans (whose maximum loan amount is below $417,000 for the contiguous states, District of Columbia, and Puerto Rico or below $625,500 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $417,000 with closing costs of $8,340. Jumbo Loans (whose maximum loan amount exceed $417,000 for the contiguous states, District of Columbia, and Puerto Rico or exceed $625,500 for Alaska, Guam, Hawaii and the Virgin Islands) are calculated based on a loan amount of $1,000,000 with closing costs of $20,000. Your actual APR may be different depending upon these factors.
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