The different types of mortgages

Everyone dreams of owning their own home someday, and if you are looking around on your own or going through a realtor like Jerry Armen few realize the gravity of the responsibility. Most take out a mortgage in order to achieve their dream, but rarely do they understand the different mortgages available to them before they start looking for their home. There are quite a few variations on mortgages. Here are some of the basic types.
The Fixed Rate Mortgages are for those who need stability in their finances. If you plan on living in the home a long time, then this is your mortgage. The rate is fixed for the life of the loan, so there are no surprises to your finances.
The Adjustable Rate Mortgage is easier for people with less than sterling credit to secure, than is a Fixed Rate Mortgage. The rate is fixed for a specified period of time, after which it adjusts with the market. In a stable market, this is the mortgage to go with, since the rates are often much lower than in a 30-year Fixed Rate Loan, for example.
The 10/1 loan is designed when you are planning to either refinance your mortgage or move from your home within ten years. The rate is fixed for the first ten years, then is based on the mortgage index. The rates are, again, much lower than a Fixed Rate Mortgage.
These types of mortgages only scratch the surface of the multitudes of variations on the mortgage available to the home buyer today. You must educate yourself before you enter the market. Otherwise, you may lose a lot of money being straddled with the wrong kind of mortgage.