Nearly 80 % of all mortgages today are being negotiated by Mortgage brokers. This is because today there are so many different programs to choose from - the process can indeed become daunting. Let a mortgage professional guide you thru the myriad of choices to find the program that suits your needs.

Mortgage brokers are a good source for unique loan programs. Local and commercial banks usually grant loans only to those who have perfect credit history, sufficient income and with strong assets. In addition to these type of loan programs, most mortgage brokers also have access to niche loan products for home buyers in less than perfect financial situations, such as high debt-to-income ratio, high loan-to-house value ratio, no-income-verification, bad credit, history of bankruptcy and foreclosure, etc. Some brokers also have loan programs for unique homes, such as multi-million dollar home, condominium and cooperative units that do not qualify Fannie Mae guidelines, etc.

One example of a loan program that has become popular recently is the pay option ARM. Basically, it gives you the option of making four different payments each month:

-Minimum payment (you actually pay less than the interest due for the month, and the difference is added to your loan amount)
-Interest only payment (you only pay the amount of interest that is due for the month)
-30 year amortization (pay the amount that it would take to pay off the loan in 30 years)
-15 year amortization (pay the amount that it would take to pay off the loan in 15 years)

As you can see, this loan program offers a lot of flexibility. However, it is based on an ARM, so the interest rate is always changing. Also, it can be tempting to make the minimum payment every month, but if you do, you'll find yourself owing more on your home then when you started. Many innocent homeowners have been lured into this loan with promises of low rates or payments, only to find that things weren't as they appeared.

There are literally thousands of different mortgage loan programs available out there. To name a few: 3/1 ARM, 5/1 ARM, 7/1 ARM, 10/1 ARM, Pay Option ARM, 30/15 Balloon Mortgage, 30/7 balloon, 30 year fixed rate, 20 year fixed rate, 15 year fixed rate, 3/1 interest only ARM, 5/1 interest only ARM, etc.... There are also different income verification programs available, such as: stated income stated asset, stated income verified asset, no income no asset, no ratio, no doc., 12 months bank statements, 24 months bank statements, and many many more. This is just a very short list of some of the thousands of mortgage loan programs available. Many times different loan programs are combined also such as: an 80/10 (1st and 2nd mortgage), cash-out, interest only loan with no income documentation. While all this can sometimes be very confusing to a homeowner, a good mortgage broker can find the "right" program that best suits each unique situation of each borrower.

One very important thing to keep in mind about mortgage loan programs is that they are never carved in stone. Changes in market conditions and investment climates cause lenders to have to make changes to their programs and guidelines. Don't make the mistake of thinking that just because a program that you qualify for exists today that it will always be there.

Loan Programs - Today, there are numerous loan programs offered by various lenders. The loan programs enable more homeowners and homebuyers to qualify for a mortgage. These loan programs come with many different characteristics. Below you will find some of the more popular and lesser known home loans available to borrowers.

The most popular loan program is the 30 Year Fixed Rate Mortgage. This loan is for borrowers that plan on living in a home longer than 7 years. They have the comfort of knowing that their payment will stay the same over the life of the loan.

If you know that you may only be in the home a short period of time you may want to consider an Adjustable Rate Mortgage (ARM) instead. Most of the ARM's offered carry a fixed interest rate for the first 3,5,7 or even 10 years. After this time has passed you the interest rate will adjust based upon the terms of your contract, but typically every 6 to 12 months. In some cases you will be able to get a better interest rate on an ARM when compared to a 30 year fixed rate mortgage.

If you are looking for a loan program with some flexibility in your monthly mortgage payment you may want to consider a Pay Option ARM loan or an interest only loan. Both of these programs offer much lower monthly payments than your traditional ARM's and fixed rate home mortgage loan programs. Consult a mortgage professional for more information on how these loan programs work or for more information or options about other loan programs as well.

If you have experienced credit issues you might only qualify for a short term Adjustable Rate Mortgage. These "fix-it" loans will remained as a fixed rate for the first two or three years and then switch to an adjustable rate.

The 15-year Fixed Rate Mortgage is another very popular loan program. It is most preferred by self occupied home owners because the 15-Year Fixed Rate loan offers one of the fastest ways to build equity in the home, and thereby pay off the mortgage in a much shorter time.