Although there are a number of different mortgage types, they all fit into two different broad categories, which are mortgages carrying fixed interest rates, and mortgages that have variable interest rates that change based on a periodic schedule. Here is the most popular mortgage types defined.

The first mortgage types defined that we will look at are fixed rate mortgages. Fixed rate mortgages offer much more predictable housing costs for the entire life of the mortgage loan. There are a number of different options available to you for when it comes to fixed rate mortgages, including 30 year fixed rate mortgages, 15 year fixed rate mortgages, convertible fixed rate mortgages and biweekly mortgages, just to name a few. The traditional 30 year fixed rate mortgage was the only option in the past, but there are numerous additional options in this day and age. By providing more options, mortgage lenders are helping to keep the result of free credit reports more positive.

The other mortgage group is adjustable rate mortgages, or mortgages with interest rates that change over time. The standard adjustable rate mortgage is one where the interest rate rises as interest rates go up over time, rather than staying at one fixed, flat rate as in other types of mortgages. There are also newer types of mortgages that offer something of a combination between the adjustable rate mortgage and the fixed rate mortgage by giving homebuyers the qualities associated with each mortgage. For example, Premiere mortgages give homeowners the level of predictability of a fixed rate mortgage for a period of time, such as seven to ten years, and then the interest rate adjusts to fit the current market value for that period of time. This is an advantageous mortgage type both for the homeowner and the lender, as it guarantees that the homeowner will stay in the home for at least seven to ten years in order to enjoy the fixed rate, and the homeowner will be able to take advantage of a lower fixed rate without having to worry about market conditions for seven to ten years. A defaulted mortgage loan can wreak havoc on a credit rating report, so it’s important to make payments when due and view credit report information regularly.

It is important to have differentmortgage types defined so that you can get a feel for which mortgage will best suit your needs. In the past, your options were 30 year and 15 year fixed or adjustable rate mortgages and that was all there was to it. These days, there are a wide variety of additional mortgage options available, and having each of these mortgage types defined is the first step to figuring out which is going to best meet your needs and the needs of your family.

Before applying for a mortgage, it is a good idea to check your credit report. If you don’t know where to find this information, try searching “www credit report” online.