1. Purchase Loan:
This is a regular loan for the property purchase in the US. The loan will be disbursed simultaneously with the property transfer, the closing.
2. Construction Loan:
A construction loan continues from the start until the end of the construction phase, so strictly speaking it can be considered interim financing. The payout takes place according to the contractual stages of construction progress. Commitment interest will not be collected; however, interest will accrue only for the amounts which have been disbursed.
3. Construction/Perm Loans:
Perm stands for "permanent" and thus also explains the nature of this type of financing. A so called "C/P-Loan" is a mortgage which will be replaced automatically at the completion of construction by post-delivery. With the building completion a "Mini"-Closing will take place during which the last installment will simultaneously be paid out to the contractor. With this mini closing the permanent financing begins and only then will the regular interest payments for the remainder of the term take effect.
4. Rate & Term Refinance:
This is a classic form for refinancing. You choose this form of financing if you have an existing loan running, but want a better interest rate, a different loan term or a totally different loan model. Loan disbursement of the new loan takes place simultaneously with the cancellation of the old mortgage.
5. Cash-Out Refinance:
This form of financing is recommendable if you are already in possession of a property, which is still unencumbered ("free & clear"). Regardless of whether you would like to purchase a new property, can afford a new boat, or wish to use the money for something else: The type of use does not matter, your property will be mortgaged and the money will be paid out to you or transferred into one of your pre-specified bank accounts by using bank-guaranteed checks.