* Adjustable-Rate Mortgage Types

Adjustable-rate mortgages (ARMs) come in many flavors, colors and sizes. The interest rate fluctuates. It can move up or down monthly, semi-annually, annually or remain fixed for a period of time before it adjusts.

* Types of Adjustable Rates
Adjustable Rates (ARMs) and Interest Only (IOs)

* 1 year ARM
* 3/1 ARM
* 5/1 ARM
* 7/1 ARM
* 10/1 ARM

* 1 year ARM refi
* 3/1 ARM refi
* 5/1 ARM refi
* 7/1 ARM refi
* 10/1 ARM refi

* 3/1 ARM (IO)
* 5/1 ARM (IO)
* 7/1 ARM (IO)
* 30 year fixed (IO)
* 3/1 ARM (IO) refi

* 5/1 ARM (IO) refi
* 7/1 ARM (IO) refi

* Option ARM Mortgage Types

Option ARM loans are complicated. They are adjustable-rate mortgages, meaning the interest rate fluctuates periodically. Like the name implies, borrowers can choose from a variety of payment options and index rates. But beware of the minimum payment option, which can result in negative amortization.

* Combo / Piggyback Mortgage Loan Types with an ARM 80/20

This type of mortgage financing consists of two loans: a first mortgage and a second mortgage. The mortgages can be adjustable-rate mortgages or fixed-rate or a combination of the two. Borrowers take out two loans the first is 80% LTV, and the Second is 20% LTV hence; an 80/20 that equals 100% financing for that matter if a borrower has some money for down payment just adjust the numbers accordingly to avoid paying private mortgage insurance. Still the First Mortgage can be fixed, but the Second Mortgage always Adjusts sometimes with a Balloon.

* Equity Mortgage Loan Types

Equity loans are usually in second in position and junior to the existing first mortgage. Borrowers take out equity loans to receive cash. The loans can be adjustable, fixed or a line of credit from which the borrower can draw funds as needed. An Equity Mortgage Loan can be the only Mortgage say if a prospective Borrower owns a Home free, and celar.

* Mortgage Buy downs

Borrowers who want to pay a lower interest rate initially often opt for mortgage buydowns. The interest rate is reduced because fees are paid to lower the rate, which is why it's called a buydown. Buyers, sellers or lenders can buy down the interest rate for the borrower.

* Bridge / Swing Loans

These types of mortgage loans are used when a seller has put a home on the market, but it has not yet sold, and the seller wants to borrow equity to buy another home. The seller's existing home is used as security for a bridge (also called swing) loan. Still keep in mind some Underwriters will calculate the debt to income ratio with all prospective debt included.