Summer’s Top Mortgage Products: What Brokers Need to Know

As we move into the heart of summer, mortgage brokers must stay abreast of the latest trends and top products in the market. The mortgage industry is constantly evolving, and keeping up with these changes is crucial to providing clients with the best options available. In this post, we’ll explore summer’s top mortgage products that brokers need to know about, highlighting their key features, benefits, and potential drawbacks.

1. Fixed-Rate Mortgages

Fixed-rate mortgages remain a staple in the industry, especially for clients seeking stability and predictability in their monthly payments. These loans offer a fixed interest rate for the life of the loan, which typically ranges from 15 to 30 years.

Key Features:

Predictable monthly payments

Protection against interest rate fluctuations

Easy to understand and explain to clients


Ideal for clients planning to stay in their homes long-term

Provides peace of mind with consistent payments


Typically higher initial interest rates compared to adjustable-rate mortgages

Less flexibility if interest rates drop significantly

2. Adjustable-Rate Mortgages (ARMs)

Adjustable-rate mortgages offer lower initial interest rates than fixed-rate mortgages, making them attractive to clients who expect to move or refinance before the rate adjusts. ARMs usually come with an initial fixed-rate period, after which the rate adjusts annually based on market conditions.

Key Features:

Lower initial interest rates

Initial fixed-rate period (e.g., 5, 7, or 10 years)

Rate adjustments tied to an index


Lower monthly payments during the initial period

Potential savings if interest rates remain stable or decrease


Uncertainty with future rate adjustments

Possible payment increases over time

3. FHA Loans

FHA loans are government-backed mortgages designed to help first-time homebuyers and those with less-than-perfect credit. These loans require lower down payments and offer more flexible qualification criteria.

Key Features:

Low down payment requirements (as low as 3.5%)

Flexible credit score requirements

Government backing


Easier qualification for clients with lower credit scores

Accessible for first-time homebuyers with limited funds for a down payment


Mortgage insurance premiums required

Limits on loan amounts based on geographic location

4. VA Loans

VA loans are designed for veterans, active-duty service members, and eligible surviving spouses. These loans offer competitive interest rates and require no down payment or private mortgage insurance (PMI).

Key Features:

No down payment required


Competitive interest rates


Excellent option for qualifying veterans and service members

Significant savings with no down payment and PMI


Only available to eligible veterans and service members

Funding fee required (can be financed into the loan)

5. Jumbo Loans

Jumbo loans are for clients needing to finance properties that exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA). These loans typically have stricter credit requirements and higher interest rates.

Key Features:

Higher loan amounts than conforming limits

Stricter credit and income requirements

Higher interest rates


Allows clients to finance luxury properties or homes in high-cost areas

Flexible terms and repayment options


Higher interest rates and down payment requirements

Stricter qualification criteria

6. Interest-Only Mortgages

Interest-only mortgages allow clients to pay only the interest on their loan for a set period, typically 5 to 10 years. After this period, the loan converts to a standard amortizing mortgage, and clients begin paying both principal and interest.

Key Features:

Initial interest-only payment period

Conversion to principal and interest payments


Lower initial monthly payments

Increased cash flow flexibility for clients


Higher payments after the interest-only period ends

Potential for negative amortization

Staying informed about the latest mortgage products is essential for brokers to provide the best service to their clients. By understanding the key features, benefits, and drawbacks of summer’s top mortgage products, brokers can tailor their recommendations to meet each client’s unique needs. Whether your clients are looking for the stability of a fixed-rate mortgage, the flexibility of an ARM, or the benefits of a government-backed loan, having a comprehensive understanding of these products will ensure you can offer the best solutions available.