What Kind of Loan

There are two broad categories of mortgages: fixed and adjustable rate. All mortgages fall into one of these two categories. In a fixed rate mortgage, the interest rate is the same throughout the term of the mortgage. In an adjustable rate mortgage, the interest rate is subject to changes throughout the term of the mortgage after an initial fixed period of years. Within these two broad categories, there are many different types of mortgages. Each loan is designed to cater to people in different financial situations. Many of which are for the first home buyer.