Thirty-Year Fixed Rate Mortgage
The traditional 30-year fixed-rate mortgage has a locked interest rate for the life of the loan, and monthly payments that never change.

Fifteen-Year Fixed Rate Mortgage
This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate—and you'll own your home twice as fast. The disadvantage is that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years.

Adjustable Rate Mortgages (3/1 ARM, 5/1 ARM, 7/1 ARM)
These loans—also called 3/1, 5/1 or 7/1—can at times offer lower interest rates and a fixed payment for a longer period of time than other adjustable rate loans. For example, a "5/1 loan" has a fixed monthly payment and interest for the first five years and then the rate may adjust based on then-current rates for the remaining life of the loan. It's a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.

When it comes to ARMs there's a basic rule to remember...the longer you ask the lender to charge you a specific rate, the more expensive the loan.