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Types of Mortgages Fixed-Rate Mortgages Fixed-rate mortgages, the most popular type of mortgage, offer the peace of mind that your interest rate will remain the same for as long as you have your loan. Typically, the longer the term of the mortgage, the more interest you pay over the life of your loan. However, stretching out your repayment term means your monthly mortgage payments will be less than they would be with a comparable shorter-term mortgage. Fannie Mae-approved lenders offer a wide array of fixed-rate mortgages. Adjustable-Rate Mortgages (ARMs) Fannie Mae began offering the adjustable-rate mortgage (ARM) in the early 1980s, when long-term interest rates were high and people needed a new type of financing to buy homes. These products start out with a lower interest rate, then the interest rate adjusts periodically. Fannie Mae-approved lenders offer a wide array of adjustable-rate mortgages. Low Down Payment Mortgages Recognizing that saving enough money for a down payment can be a major stumbling block to buying a home, Fannie Mae has developed a wide array of low down payment mortgages. These Fannie Mae products are ideal if you have limited funds for closing costs as well. The Flexible 97® loan is designed for home buyers with very good credit histories; other low down payment loans offer more flexible qualifying requirements and may be particularly helpful if you have a limited income. Fannie Mae-approve lenders offer a wide array of low down payment mortgages. Home Improvement Mortgages By choosing to buy and fix up a home or by renovating your current home, you can make your dream house a reality. And with the right financing, you can do it economically. Fannie Mae offers you several types of mortgages that let you finance home improvements. Reverse Mortgages Unlike a traditional mortgage that you pay back each month, reverse mortgages provide payments to you. They, in effect, "reverse" the direction of the mortgage payments. Reverse mortgages provide an excellent opportunity for older Americans to enjoy extra security and financial support. To provide additional housing options for older homeowners, HUD insures reverse mortgages under the Home Equity Conversion Mortgage (HECM) program. Fannie Mae supports the HECM program and the options it offers older homeowners. Lenders offer a wide array of reverse mortgages. Special Financing Mortgages Fannie Mae works to address the housing needs of those who have not traditionally been well-served by standard mortgage products, including Native Americans, those living in rural areas, and people with disabilities. If you are a borrower in one of these categories, consider one of these Fannie Mae products, available from Fannie Mae-approved lenders who specialize in these areas. 
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