Rate-term: The major purpose of this program is to adjust your current loan, either by modifying your loan term or by changing your current interest rate. The amount of the loan is only enough to repay the current balance of the mortgage.

Cash-out: This loan program is, in essence, borrowing more money by increasing your current mortgage amount. You, in turn, receive a cash amount upon closure of the loan proceedings.

Fixed Programs: These are programs that have a steady interest rate and monthly payment amount all throughout the term. The benefits of a Fixed Program are: you are guaranteed that your rates will not rise, no matter the fluctuations in the market. These programs are good when the current rates are lower than normal.

Adjustable Rate: These types of programs adjust periodically, according to the dictates of the market. The benefits of an Adjustable Rate are: for an initial starting period, your rates are fixed and can be lower than the Fixed Program rates. This type is especially useful when rates are higher than normal.

Balloon Programs: A Balloon mortgage is useful because the term is shorter than regular loan programs. The payments are calculated according to the traditional 20 year term; but at the end of a balloon term, usually from 5-7 years long, the balance of the loan must be repaid, unless you refinance or change your loan type. Settlement costs may also apply.

Home Equity Loan: Home equity loans have a shorter loan term than your traditional loans; consequently, the monthly payments tend to be higher. A Home Equity Line of Credit (HELOC) however, is a revolving credit, and is useful when you want to borrow money to make home repairs. It is credit that can be used numerous times without having to take out another loan; however, making minimum monthly payments won't pay off the loan. You must make substantial payments that will be applied towards the principal amount, or run the risk of ending up with a balloon payment due at the end of the term.

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