There are many loan options available to you depending upon your situations. What you see in the grid below is just a basic example of what is out there. The main loan types are programs that you may find yourself looking into is as follows..

Years you plan to stay in the home Recommended program
1-3 years 3/1 ARM, 1 year ARM or 6 month ARM
3-5 years 5/1 ARM
5-7 years 7/1 ARM
7-10 years 10/1 ARM, 30 year fixed or 15 year fixed
10+ years 30 year fixed or 15 year fixed
Loan Program Advantages Disadvantages
Fixed Rate Mortgages Monthly payments are fixed over the life of the loan Higher interest rate
30 Year Fixed Interest rate does not change Higher mortgage payments
20 Year Fixed Protected if rates go up Rate does not drop if interest rates improve
15 Year Fixed Can refinance if rates go down
Loan Program Advantages Disadvantages
Adjustable Rate Mortgages Lower initial monthly payment More risk
10/1 ARM Rates and payments may go down if rates improve Payments may change over time
7/1 ARM May qualify for higher loan amounts Potential for higher payments if rates increase
5/1 ARM 30 year term, no balloon payment
3/1 ARM
1 year ARM
6 month ARM
1 month ARM
Loan Program Advantages Disadvantages
Balloon Mortgages Lower initial monthly payment Risk of rates being higher at the end of the initial fixed period
Lower payment for a predetermined period of time Risk of foreclosure if you cannot make balloon payment, refinance, or exercise the conversion option
Many balloon mortgages offer the option to convert to a new loan after the initial term Balloon payment requires you to sell or refinance after the term, as opposed to a 7/1 or 5/1 program with a 30 year term
Loan Program Advantages Disadvantages
First Time Buyer Programs Lower down payment May be subject to income and property value limitations
Easier to qualify Some government subsidized programs may generate a recapture tax if you sell the house too soon
Lower rates may be available Education courses may be required to qualify for these loans
Loan Program Advantages Disadvantages
Low Documentation Programs Dont need to verify income or assets Higher rates
Faster approval Higher down payment
Good for borrowers who may not qualify with a full income documentation program
Loan Program Advantages Disadvantages
Interest Only Loans You have several payment options Higher rates
Lower monthly payments Principal loan balance will not decrease during the interest only payment period
Qualify for a higher loan amount Payment will be higher for the remaining term
Qualify at the interest only payment  Loan Options
Option to pay the full normal payment
Interest only payments for up to ten years