You'll make equal payments consisting of the loan principal and interest payments over the duration of the loan term. The fixed-interest rate remains unchanged throughout the life of the loan.

Fixed-rated loan is best for you if:

1. You plan to live in your house for a long time (longer than 10 years).
2. Do not plan to re-finance your mortgage or change your loan program until, at least 10 years or more.
3. Interest rates are at their lowest.

You are offered an initial interest rate that is significantly lower than that of a Fixed-Rate Mortgage with the exception that the interest rate will adjust periodically according to a specified index, usually a Treasury Bill. The term of the programs typically range from 6 month adjustable to 1 year or 5 year, based on the programs. Your mortgage payment and interest rate will then change after 6 months or 1 year depending on your program.

This program is right for you if :

1. You plan to move in a short period of time.
2. You plan to refinance or pay off your loan in a short period of time.
3. You boy for investment purposes and plan on selling in a short period of time.
4. Market rates are at the highest point.

The borrower pays only the interest portion of their mortgage payment within a certain time and the principle remains the same. Your mortgage payment is typically lower than a fixed-rate program.

This loan is best for you if:

1. You need a lower mortgage payment.
2. You plan to relocate in a short period of time.
3. You plan to change your loan program or refinance in a short period of time.
4. You need a lower monthly mortgage payment and an easy qualification.

Buying a house is generally the biggest investment that the average person will make in their lives. The following are some important things to consider when purchasing a home.

1. In addition to providing you with a place to live, owning a home can provide you with a possible investment reasons including potential equity growth, the stability that comes with having ownership in a home and possible tax advantages.
2. Renting might make more sense for a mobile lifestyle or if you may need to move because of job factors. If you do not foresee staying in your home for several years, the amount of equity that you build in the first year or two may be lost through selling costs and real estate commissions.