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Types of
Loans
There are two basic types of home loans available: fixed rate
mortgages and adjustable rate mortgages (also called ARMs). Both
types offer you distinctly different features and benefits, as well
as a variety of financial options.
Two additional types of funding are available to existing homeowners:
Home Equity Loans and Home Equity Lines of Credit. These allow homeowners
to tap into the equity they’ve built in their home and acquire funds
for major purchases at attractive interest rates.
Home equity loans feature a fixed rate, while home equity lines
of credit feature a revolving line of credit and a variable interest
rate (similar to a credit card). (Some states prohibit or restrict
equity-based loans and lines of credit. Please check with your First
Horizon loan professional before you apply.)
Our range of construction loans includes One-Time Close and Renovation
Plus. These products offer the flexibility you need when building
a new home or renovating an existing property. Lot loans are also
available in conjunction with One-Time Close.
The more you know about these types of mortgages, the more active
a role you can play in choosing your loan program . . . and the
more comfortable you’ll feel.
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Equal Housing Opportunity