You have many options when it comes to home loan types. It is worth taking the time to learn about them. We can help you select the right type of loan to suit your requirements. Traditional fixed-rate mortgages are the most popular type of home loan. They have monthly principal and interest payments that never change over the life of the loan. Gradually paying mortgages are loans where the monthly payment is increased for a set amount of time, such as five or ten years. Then the payments become fixed for the remainder of the loan's term. Gradually paying mortgages are a good option for borrowers who have high interest rates. This will increase the likelihood of them being approved. The initial payment is lower, which can help to improve their chances of getting a loan. A downside to choosing a smaller initial payment is the fact that interest rates rise and payments shortfalls from initial years are added to the loan. This can lead to "negative amortization." Negative amortization is when the monthly loan payment over any given period exceeds the interest paid. This can lead to an increase in loan balance.