A home loan is for most of us, a once in a lifetime decision. Being a very important and difficult decision with which you will have to live for the rest of your life and probably pass it on to the next generation, you need to be extremely cautious and explore all of your options.

Which type of home loan is best for you? Well, below is a

The rate you would qualify for on a purchase has many variables affecting it. The great rates you see advertised might not be the rates that are available to you. It helps to know what factors are involved.

What does affect Mortgage Rates?

• How much of a down payment are you supplying? Rates for 100% financing are higher than if you were

The most basic home loan is a fixed rate mortgage. It is what it advertises; a fixed rate and payment for the life of the loan. So whether it is 2 years or 10 years into the loan the mortgage payment and rate will still be the same.

They are available in 10, 15, 20, 25 and 30 year periods. The most popular are 30 and 15 year loans.

What you need to know about Interest Only Mortgages...

• These loans can be either an ARM or Fixed rate mortgage.
• The purpose of these loans is to obtain the lowest possible payment per month. You are only paying the interest owed on the loan. No principal is paid down. So after 1 or 3 years of interest only payments the original principal

What you need to know about adjustable rate mortgages...

• The rate is fixed only for a predetermined time (chosen from 2, 3, 5, 7 or even 10 year terms). After which the rate will adjust per year (or depending on the loan program) equaling the index plus margin selected at the start of the loan.
• Advantage of an ARM is typically they carry