As was mentioned earlier, there’s a mortgage for everyone’s interest. Big ones, small ones, fancy-named ones, and of course confusing loans too. The biggest demand tends to come from first-time home buyers so there are first time mortgage options as well.
	The government even has programs to help first-time buyers get into homeownership through Federal Housing Administration loans (FHA loans) and Veteran Administration loans for veterans (VA loans). The most common commercial-lender loans include the following: Fixed - Your Interest rate and monthly payment are set up on a stable schedule so that they don’t change for the duration of the loan. You pay the same amount every month, every year, until the loan is paid. This is the most common loan, historically, and works for homebuyers who plan to stay in their homes more than 10 years and don’t want financial fluctuation. 10/1 Two-Step – Your mortgage payment stays the same for the first 10 years. However, at the 11th year, your interest rate changes annually. This approach gives you a lower loan payment up front for the risk of a higher payment later. This option protects your ability to stay in the house longer, but lowers the cost in the first years if you want to treat it as a quick investment. 7/23 or 30 due in 7 (2 step) – Similar to the 10/1 Two-Step, your interest and loan payment are stable the first 7 years, but on the 8th year your interest rate floats with the market and can cost much more for the life of the loan. Again, this option works better for those with a short stay in mind and plan to sell in a few years. 3 year and 7/1 Year Adjustable Rate Mortgage (ARM) loans – Your payment is a lower interest and stable the first 3 or 7 years. Then, in the 4th or 8th year, your interest starts to go up and is usually pegged to market index plus a few points. You definitely want to sell before year 7 arrives in this deal. 5 and 7 Year Balloon – The riskiest of the bunch, this options is a short-term loan for the lender. Again, you have 5 or 7 years of stable payment. However, at the end of the calm period, you owe the entirely of the loan balance to be paid in full! Under this deal you either definitely know you will be selling well before the deadline or you plan to refinance with a new loan. Folks tend to take this type of loan because it offers very low interest in the first few years. Adjustable rate mortgages – These mortgages come in a number of packages. You could have a one year, 3 year, 5 year and so on. All work on the same principal: there is a grace period, and then the interest rate starts to climb at the whim of the lender. Again, the attraction is the low interest charge offered the first few years, and these packages only work for investors willing to take on timing risks and that the market will buy their home when needed.