Knowledge Center
Loan Types
What type of loan program is best for me?
Perhaps one reason so many people are intimidated by the home loan process is because there are so many options. But don’t worry. At Crystal Clear Mortgage, we’re here to personally explain all your options and guide you to the best choice for you. In the meantime, you can explore all the home loan options we offer right here.
Fixed Rate Mortgage (FRM)
The most common type of loan option, the traditional fixed-rate mortgage includes monthly principal and interest payments which never change during the loan’s lifetime.
Adjustable Rate Mortgage (ARM)
Adjustable-rate mortgages include interest payments which shift during the loan’s term, depending on current market conditions. Typically, these loans carry a fixed interest rate for a set period of time before adjusting.
Hybrid ARMs
Hybrid ARM mortgages combine features of both fixed-rate and adjustable-rate mortgages and are also known as fixed-period ARMs.
FHA Loans
FHA home loans are mortgages which are insured by the Federal Housing Administration (FHA). They may help borrowers who have trouble qualifying for a conventional loan.
VA Loans
VA loans are mortgages guaranteed by the Department of Veterans Affairs. These loans offer eligible military veterans exceptional benefits. This program was designed to help military veterans realize the American dream of home ownership.
Interest Only Mortgage
Interest only mortgages are home loans in which borrowers make monthly payments solely toward the interest accruing on the loan, rather than the principal, for a specified period of time.
Components of an ARM
Prior to choosing a home loan, you should know the advantages and risks of adjustable-rate mortgages to make an informed, prudent decision.
Commonly Used Indexes for ARMs
ARM lenders tie their rates to an index. Ask your loan officer which index a loan uses and how it has moved, since it affects ARM mortgage rates.
Balloon Mortgages
Balloon mortgages include a note rate that remains fixed initially, and the principal balance becomes due at the end of the mortgage term.
Reverse Mortgages
Reverse mortgages allow senior homeowners to convert a portion of their home equity into cash while still living in the home.
Graduated Payment Mortgages
Graduated payment mortgages are loans in which mortgage payments increase each year for a predetermined period of time and then become fixed for the remaining duration of the loan.
Not sure which one fits? Talk with a loan officer, read about the loan process, or browse our loan programs.
Have Questions?
We’re here to help and give you the answers you need. Contact us now for more assistance.