Several types of loans

There are several types of loans, however, a home purchase mortgage basically boils down to two essential definitions. The first is one which has a fixed rate meaning that the rate is not subject to change and will remain consistent throughout the duration of the time allotted. The second is one that is referred to as a floating, or adjustable rate, meaning that the rate is subject to change and is adjusted as need throughout the duration of the loan. Occasionally there will be a combination of the two, such as for a specified amount of time the rate will remain the same, but after a point, if the loan has not been paid off the required payment amount will be adjusted as needed to compensate.