A mortgage in which the interest rate does not change during the entire term of the loan.

Advantages

• Predictable monthly payments

• Less risk if market conditions cause rates to rise

• Rate does not change

Disadvantages

• You pay more in interest

• Higher interest rate

• Unable to take advantage of lower interest costs if market changes to lower rates

A mortgage whose interest rate changes periodically based on the changes in a specified index.

Advantages

• Flexibility

• Lower initial monthly payment

• You pay less for short term ownership

• May be easier to qualify for higher loan amounts

Disadvantages

• More risk

• Inability to predict future housing costs

• Potential higher payments (at max. interest rate)

A mortgage in which the interest rate does not change during the entire term of the loan.

Advantages

• Don’t need to verify income

Disadvantages

• Higher rates

• Need a low LTV to qualifier rates

With this type of loan, you receive a first mortgage for 80 percent of the loan amount, and a second mortgage at the same time for the remainder of the balance.

ADVANTAGES

• Avoid PMI

• Potential tax advantages

DISADVANTAGES:

• Possibly higher monthly payments

• Two monthly payments instead of one

A credit line that is secured by a second deed of trust on a house.

ADVANTAGES

• Flexible access to funds

• Potential tax advantages

• You only draw what you need

• You only pay interest on what you borrow

DISADVANTAGES:

• Ties up equity making it unavailable for other needs

• Higher interest rate than a first mortgage

a loan secured by a second deed of trust on a house, typically used as a home improvement loan.

ADVANTAGES

• Predictable fixed payments

• Possible tax advantages

DISADVANTAGES:

• Ties up equity making it unavailable for other needs

• Higher interest rate than a first mortgage

• Cannot pay down and withdraw additional funds