Term Answer Description Fixed-rate mortgage A. This mortgage allows the borrower to pay only the accrued interest on the loan for a specified period of time; after this date, all payments require the payment of both interest and principal Interest-only mortgage B. This mortgage allows borrowers to make smaller-but gradually and constantly increasing-payments for the first three to five years. At the end of this period, the payments then stabilize at the higher level and are repaid over the remaining life of the loan VA loan guarantee C. This loan guarantee is offered by a department of the federal government to lenders who make qualified loans to eligible veterans of the U.S. Armed Forces and their surviving spouses Biweekly mortgage D. This mortgage provides for two interest rates: one that is charged for the first five to seven years and a higher rate that is charged during the remaining term of the loan E. The payments on this mortgage are equal to one-half of a regular monthly payment and are paid every two weeks rather than once a month Two-step ARM Adjustable-rate mortgage F. This loan program, offered through a department of the federal government, provides mortgage insurance to lenders offering mortgage loans with loan-to-value ratios greater than 80% Convertible ARM G. Over the life of this mortgage, the interest rate and the monthly payment are fixed H. Graduated-payment ARM This type of mortgage typically requires a down payment of 20% of the value of the mortgaged property I. This mortgage provides a borrower with the flexibility to switch from an adjustable interest rate to a fixed rate, usually during the second to fifth year of the loan FHA mortgage insurance Conventional mortgage J. This mortgage is characterized by an interest rate and monthly payments that can be adjusted over the life of the loan based on movements in market interest rates