5/1 and 7/1 Fixed Rate
Rate is fixed for the first 5 or 7 years and then shifts to an adjustable rate mortgage (ARM).

Adjustable Rate Mortgage (ARM)
Among the lowest start rate, this type or program Adjusts either every 6 months or every 12 months depending on program and grade and is based on the economy 6% ceiling for prime and 7% ceiling for sub-prime.

2/28 and 3/27 ARM
An ARM program that is fixed for the first 2 or 3 years, then shifts into a 6-month adjustable rate mortgage. It is a sub-prime program giving you a rate lower than the sub-prime 30-year fixed, and, if you have had credit problems, it allows time to rebuild credit and obtain seasoning. You will then want to refinance this loan.

Option Arm
Provides multiple payment options that typically include a minimum monthly payment, an interest-only payment and a fully amortized payment.

Interest Only Option
This program provides the borrower with an option to pay an interest only payment.

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