Conventional

A home mortgage that is neither FHA-insured nor VA-guaranteed, for loans less than $417,000

Jumbo

A mortgage larger than the maximum eligible for purchase by the two Federal agencies, Fannie Mae and Freddie Mac, $417,000 in 2008 . However, in that year, the agencies were given limited authority to purchase jumbos.

Interest Only

A mortgage on which for some period the monthly mortgage payment consists of interest only. During that period, the loan balance remains unchanged.

Construction to Permanent

A mortgage loan which provides funds for the construction or renovation of a residential property. During the construction/renovation phase, funds are disbursed based on completion of the construction. A benefit of this product is that only one closing is required, therefore eliminating the cost of duplicate closings.

Adjustable Rate Mortgage

An adjustable rate mortgage (ARM) is a mortgage loan where the interest rate on the note is periodically adjusted based on a variety of indices. Among the most common indices are the rates on 1-year constant-maturity Treasury (CMT) securities, the Cost of Funds Index (COFI), and the London Interbank Offered Rate (LIBOR). A few lenders use their own cost of funds as an index, rather than using other indices

VA Mortgage

A VA loan is a mortgage loan in the United States guaranteed by the US Department of Veteran Affairs. The loan may be issued by qualified lenders. The VA loan was designed to offer long-term financing to American Veterans or their surviving spouses (provided they do not remarry).

FHA Mortgage

A loan insured by the Federal Housing Administration. This product typically requires a lower down payment; however, the Federal Housing Administration sets maximum mortgage limits by state and by county.

Closed End Second Mortgage

This is a traditional second mortgage loan which provides you with a fixed amount of money repayable over a fixed period. This type of loan advances all funds at the time the loan is closed with no further advances. 

Home Equity Line of Credit (HELOC)

Often called HELOC is a loan in which the lender agrees to lend a maximum amount within an agreed period or term, where the collateral is the borrower's equity in his/her house.  

Balloon Mortgage

Balloon Mortgages have a large lump sum payment due at a specified date to pay off your loan A baloon payment mortgage is a mortgage which does not fully amortize over the term of the note, thus leaving a balance due at maturity. The final payment is called a balloon payment because of its large size.