When you look at the number of loan products on the market, deciding which one is right for you can be a daunting task. There are fixed rate, adjustable rate, jumbo, conforming, etc. etc.; along with many variations of each.

The best solution to this problem is to speak with a qualified lender to help you sort out your many options. This article will give you a quick primer on some of the most common types of mortgage loans:

Fixed Rate Mortgages

These are by far the most popular of mortgage types. They may be paid back (amortized) over 10, 15, 20, 30, or even 40 years with the interest rate and payments remaining fixed every month.

Adjustable Rate Mortgages

These are similar to Fixed rate mortgages, they are amortized over a period of years, however the interest rate can fluctuate. They have a set period of time for which the interest rate is fixed, then it will reset based on the market rate at that time. They offer lower rates upfront, but rates can go up sharply without much notice.

FHA Loans

These loans are guaranteed by the government and typically offered to first time homebuyers with moderate to lower income. Since they are guaranteed by the government, they are often easier to qualify for and require a lower down payment than typical loans. The interest rates even can be lower as well.

VA Loans

These loans are also guaranteed by the federal government and are reserved for individuals with a history of active military duty, or their surviving spouses. They are often provided with little or no down payment required and attractive interest rates.

Interest Only Mortgages

Interest only loans allow a borrower to pay just the interest portion of their home loan for a period of time. These loans can be very dangerous for consumers, as each month, they are making no progress on paying down their mortgage debt. They should only be used with caution and a proper understanding of how they work. These loans are attractive to borrowers because they dramatically lowers their monthly payments for a period of months

Option ARMs

With an Option ARM (Adjustable Rate Mortgage), the interest rate can adjust every month with no warning. Borrowers are interested in Option ARMs because they offer a lower initial monthly payment, however the payments can rise steeply down the road.

Balloon Mortgages

Balloon Mortgages typically follow the pattern of a fixed rate mortgage, however the entire balance is due in a much shorter period of time, typically 5-7 years. The borrower will make payments as if it was a standard fixed rate loan, but will be required to pay the remaining loan amount after 5 years. Borrowers are attracted to these loans because they usually offer a lower interest rate.