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There are many different types of Mortgages and depending on the one you choose you can make affording your home much easier.

These are different options for the most common Mortgages brought to you by USA.gov.

 

Fixed-rate mortgage

Pros: No surprises The interest rate stays the same over the entire term, usually 15, 20 or 30 years.

Cons: If interest rates fall, you could be stuck paying a higher rate.

Adjustable-rate (ARM) or variable-rate mortgage

Pros: Usually offers a lower initial rate of interest than fixed-rate loans.

Cons: After an initial period, rates fluctuate over the life of the loan When interest rates rise, generally so do your loan payments.

FHA (Federal Housing Administration) loan

Pros: Allows buyers who may not qualify for a home loan to obtain one Low down payment.

Cons: The size of your loan may be limited.

VA loan

Pros: Guaranteed loans for eligible veterans, active duty personnel and surviving spouses Offers competitive rates, low or no down payments.

Cons: The size of your loan may be limited.

Balloon mortgage

Pros: Usually a fixed rate loan with relatively low payments for a fixed period.

Cons: After an initial period, the entire balance of the loan is due immediately This type of loan may be risky for some borrowers.

Interest-only

Pros: Borrower pays only the interest on the loan, in monthly payments, for a fixed term.

Cons:After an initial period, the balance of the loan is due. This could mean much higher payments, paying a lump sum or refinancing.

Reverse mortgage

Pros: Allows seniors to convert equity in their homes to cash; you don’t have to pay back the loan and interest as long as you live in the house.

Cons: Subject to aggressive lending practices and false advertising promises, particularly by lenders that prey on seniors. Check to make sure the loan is Federally insured.

Read the Entire Article Here at USA.gov