Conventional Loan Programs - A real estate mortgage that is not affiliated with the Federal Housing Administration or Department of Veterans Affairs.

Fixed Rate Mortgage – A Mortgage rate that is fixed throughout the entire term of the loan. Terms can be set for 10-40 years.

Adjustable Rate Mortgage – Mortgages in which the loan rate changes during the life of the loan, usually at one, three, and five-year intervals. Any changes are governed by the movement of an index such as Treasury Bills, Treasury Securities index or national or regional average of funds index.

The initial rate is fixed for an introductory period (usually one to ten years), and is typically lower than for a fixed –rate mortgage. After that, the rate adjusts annually based on a market index, but can’t go above a predetermined adjustment cap. Because of the lower initial rate, some borrowers may be eligible for a larger loan amount with an ARM than with a fixed-rate mortgage.