Which Mortgage will open the door for you?
Adapted from this Sunday's article in the Orlando Sentinel, Section YOUR MONEY

Now that you have made the decision, then it's time to shop the right loan. But do you
know what's best for you?

In this aggresive mortgage market, it can be overwhelming to determine which mortgage meets your needs. There are thousands of companies that say they have the right choice for you, but the first thing is to understand what you need and what you want and can afford, so you need to explore the various options before you go and fall in love with a house.
First of all, you should have looked at your credit report. Then they key is to talk to two or three lenders because they serve different parts of the market, this is called shopping, and this will always help you to ensure that you learn about the different alternatives. Then you can negotiate what is best for you.
There are many available options in the market:

Fixed rate: The payment and interest rate are the same for a predetermined period of time. Main advantage: predictable housing costs for the life of the loan.

30-year fixed rate: the monthly payment and interest rate are the same for 30 years

15-year fixed rate: The monthly payment and interest rate are the same for 15 years.

5-year balloon: Monthly payment and interest rate are the same for five years, and at the end of the fifth year, the loan is due in full.

Adjustable rate: The payment moves up and down annually as interest rates rise and fall. Borrower bears the risk if rates rise.

Interest only: Borrower pays interest ut no principal in the beginning years of the loan, that keeps monthly mortgage payments low.

Piggy back: The loan combinesa traditional first mortgage and a home equity loan or line of credit to avoid private mortgage insurance PMI