What are the different types of mortgages?

I'm in NJ and I think the different types are 5, 10, 15, 20, 25, and then 30 year fixed mortgages. am i right?What are the different types of mortgages?
There are all kinds of mortgages. Since the mortgage crisis - the lenders have stopped with some of the crazy mortgage options.





Now, I think a fixed rate mortgage is the way to go. You can get a mortgage for a fixed term - and you lock in your interest rate. Now, rates are really low but may go up. So, I advise locking in with a fixed rate.





An ARM - is an adjustable rate mortgage. Most of these have a very low teaser rate they offer for 5 years. Then the rate readjusts each year. Your rate can really jump. Part of the mortgage crisis now - is that the teaser rates are over and rates have reset and now folks can't afford their payments so they are going into for closure.





Interest Only - this is a hybrid mortgage. You can pay the interest only each month and no principal. This will allow you to buy much more home than you can afford. The problem is - your mortgage note never goes down and can actually go up. When you go to sell - you may owe more than the home is worth (be upside down). Unless you have the cash reserves to pay the difference between what you owe and what you can sell for - you are stuck with the house and possibly a mortgage you can't afford. Some of these loans do a low teaser rate and then re-set after a few years. These loans have also contributed to the current mortgage crisis. About the only thing you can do if caught in this situation is go into foreclosure - ruin your credit. I would not even consider this type of loan.





In my opinion - get a fixed mortgage that you can afford. Go ahead and lock the interest rate in. The rates are very low now. They are only going to go up from here.What are the different types of mortgages?
2 kinds - fixed rate and ARM (adjustable rate mortgage).





Fixed rates are generally 15 or 30 year. The flexibility of 20 year and other mortgages aren't around, because mortgages are now bundled and sold, and those odd ducks can't be bundled.





Adjustable are more complex, with a time period that has a fixed rate, but the ability to reset the rate (sometimes a teaser 2% rate to get you in the house, then in 2 years it goes to 7% - hence the current mortgage crisis).

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