Your rate will remain the same for the entire term of the loan, which is usually between 10 and 30 years. If you can make a 20% downpayment, you will not need to pay additional mortgage insurance. Conventional loans are often used for refinancing. For example, a homeowner paying off an FHA loan may consider refinancing with a conventional loan to get a better rate and eliminate their mortgage interest payments. These loans are also flexible in that they can be used to finance both primary residences and rental properties.

For a fixed period of time at the beginning of your loan, you will only be required to pay the interest on the loan. For most of these loans, you pay interest only for the first 10 years of a 30-year mortgage. These are especially useful for people with inconsistent income. For example, a seasonal business owner who only operates during the summer may prefer to pay interest-only during the winter.

Your interest rate is fixed for a specified period of time, after which it regularly resets (on yearly, or even monthly, basis). This may be an effective option for those who are planning to pay off the full loan within a certain amount of time as well as those who have the cash flow to handle fluctuating rates.

Issued by FHA approved lenders and insured by the Federal Housing Administration, these loans typically require lower down payments and minimum credit scores to qualify. They are ideal for low-to-moderate income buyers.

These loans are available to current U.S service members, veterans, and eligible surviving spouses. The Department of Veteran Affairs dictates the terms of these mortgages, although they are provided by private lenders.

USDA loans offer zero down payment mortgages to homebuyers in rural areas. They are typically given to low-income buyers who can't get a traditional home loan.

Used to finance luxury properties, Jumbo loans exceed the limits set by the Federal Housing Finance Agency. For most of the United States, that loan limit is $484,350. For buyers in counties with higher home values, the limit is $726,525.

These loans allow older homeowners to borrow against the value of their house to receive monthly payments or a lump sum. For those who need supplemental retirement income and have most of their net worth tied up in their home, this can be an effective option.

You can take out a home equity loan or home equity line of credit against a property that is already mortgaged. This allows you to use your home equity to finance large purchases, such as a wedding or second home, or to consolidate debt.