Listed below are a few types of loans that you can choose from when financing your new home:

Fixed-rate Loan – When Interests are low, this is the most popular of all of the Mortgage loans. Fixed-rate Mortgages rates stay the same over the life of the loan.There are different lengths that this loan can be taken out; 10-year, 15-year, 20 and 30-year loans.

Adjustable-Rate Loan – This loan is often referred to a ARM loan.ThisMortgage has Interest Rates that fluctuate.The beginning rate is usually very low and then the rate goes up a couple of Points per year.This loan has a yearly cap, somewhere are one or two Points and it has a lifetime ceiling cap.The Interest Rate has the ability to go down also.

Two-Step Mortgage Loan - This loan is considered more risky than fixed

rate loans, but a lot less risk than ARM's during the first few years of the loan.This loan comes in convertible or non-convertible loans.A convertible means that a 5/25 or 7/23 loan and has a Fixed Rate for the first several years of the loan.The convertible loan then converts into a fixed-rate Mortgage for the remainder (25 to 30years) of the Note. A nonconvertible two-step Mortgage loan means it has a fixed Interest Rate for the first several years and the converts into an Adjustable-Rate Loan or ARM.

FHA Mortgage - this is a federal assistance loan that is insured by the Federal Housing Administration.The best part of this loan is the low down payment required.The loan may be issued by federally qualified Lenders.

VA Loan – The Department of Veteran Affairs in Washington DC administers this loan.This enables veterans of the United States to Purchase A Home with no down payment and they do not have to pay Points to the Lender.