Which of the following is considered a "non-traditional mortgage product"?

A non-traditional mortgage product typically refers to any mortgage that does not fall within the standard parameters or conventional loan structures that have been in place for decades. In this context, an Adjustable Rate Mortgage (ARM) is classified as a non-traditional product because it features an interest rate that can fluctuate over time, unlike fixed-rate mortgages, where the rate remains constant for the life of the loan. This variability introduces a level of risk and complexity that is not present in traditional mortgage products.

In contrast, both the 15-year fixed-rate mortgage and the 30-year fixed-rate mortgage are considered traditional mortgage products as they have fixed interest rates and predictable payment schedules, making them more straightforward for borrowers to understand and plan for financially.