Fixed-rate: Mortgages with a fix interest rate that will not change during the life of the mortgage.
Flexible-rate/variable-rate or ARM: Interest rate that fluctuates up or down according to the index .
Graduated payment: Payments increase gradually over the life of the mortgage.
Balloon: Low fixed payments during the lifetime of the loan with the final payment being a large final payment.
Option ARMs aka Flexible payment ARMs: Gives the option to adjust the loan rate. This type of loan have an interest rate that adjusts every month without adjustment caps. The payments will rise over time.
Interest Only Mortgages: Allows the interest of the mortgage to be paid over time. The principle of the mortgage is not paid at this time.
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