The Loans Products, Programs, & Options
- Loan Product: A Loan Product is a group of Loan Programs that are offered by certain banks, lending institutions, and government sponsored entities that have common characteristics. The most common Loan Products are the Conforming Loans offered by Fannie Mae and Freddie Mac and the FHA mortgages offered by the Federal Housing Administration.
- Loan Program: Loan Programs are the different types of loans offered within a Loan Product. Most Loan Products offer many of the same Loan Programs available in other Loan Products. The most common Loan Programs are the 30-Year-Fixed and 15-Year-Fixed Mortgages.
- Loan Option: Loan Options consist of certain loan features that are typically not common within a certain Product/Program combination. Each Loan Product and Loan Program combination may or may not offer the same Loan Option that is available on another Loan Program. Adding or removing Loan Options from a Loan Program will usually decrease or increase the cost of the loan.
