| If you are looking to finance the purchase of a new | | | | the same for the entire life of the loan. |
| home, then you will likely be looking at more than one | | | | Another type of loan is the adjustable rate mortgage, |
| mortgage loan option, including those with varying | | | | which are also known as an ARM loan, is one that |
| interest rates, payment terms and length. | | | | allows the interest to adjust based on current market |
| In order to choose the best loan for you, you will first | | | | rates. Interest only mortgages, on the other hand, is |
| want to decide how many years you plan to live in the | | | | when the homeowner is allowed to make payments |
| home that you want to purchase. A conventional fixed | | | | on the interest alone for a designated amount of time. |
| rate mortgage is generally for someone who plans to | | | | After that time expires, the payments are applied |
| live in their home for an extended period of time, which | | | | toward the principal balance of the loan. Balloon |
| is typically 15 to 30 years. The fixed rate mortgage | | | | mortgages allow for smaller payments in the beginning |
| loan is the most commonly sought of the various loan | | | | with a large payment due at the end of the term. |
| programs. With this type of loan, the interest remains | | | | |