Fixed Rate Mortgages are loans paid off in equal payments with an interest rate that does not change over the term of the loan.  These loans offer terms ranging from 10 to 40 years.  If you are choosing a 30 year term it may also be wise to ask a loan specialist about the option for a 15 year term.  For exactly half the number of years, the payment difference is surprisingly lower than many people expect; however the overall savings is quite significant.

Adjustable Rate Mortgages, or ARMs are loans that change interest rates with a predetermined market index. The rate on this loan is generally fixed for 3, 5 or 7 years and will begin adjusting at the end of the specified term.  In many cases, ARM's have a lower interest rate during the initial specified time frame than fixed mortgages and may be more applicable if you know that you are going to be in your home for a specific time frame, or if you are certain to refinance at the end of the chosen fixed rate term.

FHA loans are government supported, and offer mortgage lending at a wider range.  Because FHA insures your mortgage, lenders may be more willing to give you loan terms that make it easier for you to qualify.  Less than perfect credit, or credit problems such as bankruptcy still may qualify for an FHA loan.  FHA loans also have down payments as low as 3%, and down payment money is not source restricted as many other loan programs require.  Please ask a Loan Originator if a FHA loan may be right for you.

Veterans Administration loans are fixed-rate loans guaranteed by the US Department of Veterans Affairs. They are designed to make housing affordable for eligible US veterans.  These loans are available only to active and Honorably Discharged members of the military. These loans require little or no down payment, and they are insured by the Veterans Administration

Escrow accounts are set up on mortgage loans to collect money for property taxes and insurance payments that are typically due at the begining of each year.  Spreading the amount due over a 12 month period, and rolling it into your mortgage payment each month the mortgage holder sets this additional money into a separate account.  When tax and insurance payments are due, the mortgage holder then dispurses the money properly.  This can relieve you of the sudden burden of paying a lump sum out of pocket for taxes and insurance each year.

Government loans such as FHA will always require borrowers to hold an escrow account.  Depending on the loan type, some conventional loans allow borrowers to waive the escrow account for a small fee.  When speaking to a Loan Originator, please ask about escrow account options.

There's a simple method to significantly reduce the length of your mortgage and save you thousands of dollars. Make one extra mortgage payment a year and apply that payment toward your loan's principal.  By applying just one additional payment a year you save on average five years toward principal and interest!