mortgages, adjustable rate mortgages, and combination rate mortgages. The length that you can finance a mortgage can change as well. Locking in a mortgage rate today won't be the same as it was a year ago when rates stood at a 40-year low, but mortgage seekers are still getting a very attractive mortgage loan rate.

Fixed Rate Mortgage Loans:
If you plan to stay in your house for a long time, your mortgage rate is probably a big concern. Because your interest rate stays the same throughout the entire life of your loan, a fixed-rate loan ensures that there are no surprises. Fixed-rate mortgages are available in a variety of repayment terms, with 15, 20, and 30 years the most common.

- 30 Year Fixed Rate Mortgage
A 30 year fixed rate mortgage loan is pretty much the maximum time you can get a home mortgage. With the 30 year fixed rate option, most generally your monthly payments are lower because you are financing for a longer period of time. This loan is the easiest fixed rate mortgage to qualify for and provides the maximum interest deduction for taxes.

- 20 Year Fixed Rate Mortgage
A 20 year fixed rate mortgage loan is just right for those people that don't want to pay all the interest they would pay on a 30 year fixed rate mortgage but don't want to pay the higher

mortgage payment that comes with a 15 year fixed rate mortgage. With the 20 year fixed rate option, not only do you become debt free 10 years sooner but the interest rate is often lower than the 30 year fixed rate mortgage. - 15 Year Fixed Rate Mortgage A 15 year fixed rate mortgage pays off your mortgage debt the fastest over all the other fixed rate mortgages which saves you lots of money in interest charges. This mortgage amortizes principal and interest over 15 years & may save a considerable amount of total interest in the long run but the monthly payments will be much higher than the 30 year and 20 year fixed rate mortgages. This

type of loan offers the least amount of tax deductible interest. A 15 year fixed rate mortgage loan is just right for those people that don't want to pay all the interest they would pay on a 20 year or 30 year fixed rate mortgage. With the 15 year fixed rate option, not only do you become debt free the fastest but the interest rate is the lowest rates that are offered in the fixed rate mortgage loans.

Adjustable Rate Mortgage Loans:
With an adjustable-rate loan (ARM), the interest rate adjusts periodically as the market rates change. This means that your monthly interest rate could go up or down depending on the market. These loans are attractive to consumers because they usually offer a lower initial interest rate than a fixed-rate loan. The other benefit to this is that many people qualify for larger loans due to this initially lower rate. The downside is that the rate can increase by quit a bit and some people can't handle the instability. Each Adjustable Rate Mortgage includes an agreement that says your lender can adjust the rate at a specific time. This is called an adjustment period. Adjustment periods for ARM loans can range from 1 month to several years depending on the lender. As a general rule, the shorter the adjustment period, the lower the initial interest rate offered. For example a 1 month Adjustable Rate Mortgage often comes with a lower initial interest rate than a 6 month or 1 year Adjustable Rate Mortgage.

Combination Rate Mortgage Loans:
Combination Rate Mortgages combine fixed interest rates and adjustable interest rates. Lenders

often refer to these loans as hybrid loans. For the first 2 or 3 years, the interest rate is fixed. It remains the same and so does your monthly payment. During the remaining years of the loan, your interest rate becomes adjustable and can vary. This is a great type of loan if you want to gain control of your finances by knowing your monthly payments will be the same for the next few years. Also a Combination Rate Mortgage may suit you if you want to repair your credit and you hope to eventually get a home loan with a better interest rate, but must first show you can repay a mortgage. An example of this type of loan is a 30/3/1. A 30/3/1 Adjustable Rate Mortgage is a 30 year loan with the interest rate and payment fixed for the initial period of 3 years. At the end of 3

years, the interest rate and payment changes once each year for the remaining period of the loan.

In short, no matter which type of loan that you end up getting, be sure that you do some research before signing the dotted line. Remember this is probably on of the biggest investments that you will make so take your time and educate yourself so that you get a house with the lowest interest rate mortgage. By getting a low mortgage interest rate you can save thousands of dollars in interest over the life of the loan and actually have a lower mortgage payment. So whether you have perfect credit or less than perfect credit, or if you are self employed or have a full time job, there are a lot of lenders that will compete for your mortgage business. When banks compete you win!