Mortgages or home loans provide people with the means to buy a home, which they otherwise cannot because they do not have the entire financing to do so.

Lender now-a-days offers a variety of home loan products and as a home buyer you can choose one depending on your financial situation. Here’ is a look at the different mortgages available with lenders:

Fixed-rate mortgage – This is the traditional mortgage where the buyer pay a fixed monthly installment for over the period of the loan which can be 15 or 30 years. The interest rate on the loan remains fixed or stable throughout the loan period.

Adjustable rate mortgage – In this kind of a mortgage, your monthly installments will change depending on the change in the interest rate. So rise and fall in interest rated will affect the amount of money you pay every month. Usually the initial installment payments are low, but there is a risk of them rising in the near future.

Graduated payment mortgage loan – In this mortgage type, you make small payments every month during the initial part of the loan repayment period, but later your monthly loan contribution increase.

Interest-only loan – As the name suggests you pay only the interest amount during the loan period after which you pay up the entire loan amount.

Before you decide on a particular loan type, carefully weight all the pros and cons of the loan’s features and assess how much you would have to contribute every month and how well you will be able to meet payments before you make a decision.