Fixed-Rate Mortgage

A fixed-rate mortgage has a set interest rate for the life of the loan.

Adjustable Rate Mortgage

An adjustable rate mortgage (ARM) is a mortgage that will change based upon the cost of money according to a predetermined index.

Interest-Only Loan

An interest-only loan is a loan in which you only pay the interest without paying the principal due on the mortgage.

Balloon Mortgage

A short-term, fixed-rate loan with low payments for a set number of years and a final payment that is considerably larger than the preceding payments.

Federal Housing Administration (FHA) Loan

An FHA loan was a government loan designed for first time home buyers.  The FHA insures the loan made by the lender but does not make the loan.