There are now many kinds of mortgages available. These are some of the most widely used.
Points are an up-front payment of interest made to the lender at the time the funds are advanced.
A conventional mortgage is the old standard. The interest rate is fixed over a long term, usually 25 or 20 years. The constant monthly payment of interest and principal remains unchanged. This type of mortgage is still available. The interest rate can go up or down by a formula or calculation provided in the terms of the loan.