This is a relatively new type of loan that allows you to remodel your home and refinance your mortgage at the same time. The benefit is that you get the best rate available for a standard refinance, and you get that same great rate for the construction work.

Typically, construction loans are shorter-term, covering just the construction period alone; they are adjustable mortgages as well, usually based on prime.

A foreclosure bailout is a rare loan and a type of refinance mortgage that helps people who have gotten behind mortgage to refinance out of the old mortgage that is in the process of foreclosing on them, due to missed payments.

When someone applies for a foreclosure bailout, the new loan amount has to cover the old mortgage balance, back interest and penalties, closing costs, and attorney fees. While a foreclosure bailout is a messy proposition, it can be used when someone does not want to lose his home and has recovered his ability to repay a mortgage. Foreclosure bailouts require much higher rates, usually 56 percent above market, low debt-to-income ratios, and a 35-40 percent equity position.