When financing a home, you can choose from several loan types tailored to different needs and goals.

Loan Term Choices:
Borrowers often select 15-, 20-, or 30-year mortgages. Shorter terms mean higher monthly payments but lower total interest. Some lenders even offer 40-year options for reduced monthly strain.

Mortgage Types:
Fixed-rate mortgages keep interest steady throughout the loan.
Government-backed loans like FHA and VA cater to first-time buyers and veterans.
Interest-only loans let you pay only interest for a set time, but don’t reduce your principal.
Negative amortization loans are structured so that unpaid interest gets added to your balance—minimizing monthly payments short term.
Hybrid loans combine features like a fixed period followed by adjustable rates.
Option ARMs include multiple payment options, such as minimum, interest-only, or fully amortizing payments.

Specialized Mortgage Structures:
Piggyback loans involve a primary mortgage and a secondary loan to avoid private mortgage insurance.
Bridge or swing loans let homeowners use equity in their current home to finance a new one.
Reverse mortgages provide monthly income to homeowners 62+ using home equity, without monthly repayments.

Refinancing & Equity Access:
Refinancing can lower payments or interest rates, but look out for prepayment penalties. Cash-out refinancing taps into home equity, typically after six to twelve months of ownership.

Investor-Specific Loans:
Real-estate investors can use loans with 100% financing, though lenders often cap the number of properties they’ll finance.