There seems to be a very large variety of home loans out there, which can be daunting, especially
to someone who is about to purchase their first home.
One suggestion is that these first-timers obtain a mortgage that has the interest rate fixed just for the duration of time that they believe that they will occupy the house.
Another possibility would be the so-called "hybrid loan". These loans have a fixed interest rate for a particular time period, after which they become a loan with an adjustable rate. This may well be a choice for someone who intends to live in the home for only a few years or, possibly, for the duration of time that the rate remains fixed.
The most common loan is a thirty year fixed rate mortgage. This type of loan should be seriously considered by the majority of home purchasers.
As a final suggestion, be sure to shop around with different lenders in order to be sure that you are getting the best possible loan for you. And, as you are doing your loan-shopping, be sure to insist on getting a three page "Good Faith Estimate" from each lender, as they carry federal consumer protections and must be accurate.
