Fixed-Rate Loans:
Fixed-rate loans are currently the most popular mortgage products. People generally like fixed-rate loan products because they provide the stability of knowing  exactly what your mortgage payment will be each month for the entire term of the loan.

Fixed-rate loans are available in a 30 year, 20 year and 15 year terms.

A fixed rate mortgage is a good choice in the following scenarios:
1. Interest rates may rise in the next few years and you want to keep the current rate
2. You plan to stay in your house for many years
3. You prefer the stability of a fixed principal/interest payment to a payment that periodically changes (adjustable-rate payment amounts periodically change according to the interest rate)


Adjustable Rate Loans (ARM)
Adjustable-rate loans (ARM) provide a low interest rate for the initial payment period. Compared to fixed-rate loans, these loans allow you to save on your monthly payment at the beginning of your loan term.

Adjustable-rate loans are available in 30-year and 15-year terms and your interest rate will stay the same for the first 7 or 5 years before being open to annual adjustment.

An adjustable-rate mortgage is a good choice in the following scenario:
1. You are planning to move in a few years (before the end of the initial rate period) and are not concerned about future rate increases
2. You think interest rates may fall in the future
3. You want a lower initial monthly payment than a fixed-rate mortgage usually offers


Government Loan Options:
The Federal Housing Administration (FHA) and the U.S. Department of Veterans Affairs (VA) offer government-insured mortgage loans. These loans are generally easier for first-time home buyers to obtain and offer the following advantages:

1. Low down payment requirements
2. Flexible credit score and income guidelines