The variety of home financing options available today means homeowners and prospective homeowners can select a home mortgage product that best suits their particular needs. Your home not only provides a sense of security and wellbeing, it is probably your largest asset. It is a wise investment for many different reasons.

The interest on home financing is tax deductible, as well as the property taxes you pay. Another financial benefit of home ownership is that your equity increases while property values increase. It can be borrowed against to make home improvements, consolidate bills, cover unexpected medical expenses, or pay for a college education.

Basic Mortgage types: Fixed rate or adjustable rate mortgages

 Fixed Rate mortgate

      *  Terms can vary from 15 to 30 years

      *  Interest rate does change over the life of the loan

      *  $200,000 loan for 30 years at 6.62% would pay $1280 monthly.  

Adjustable Rate Mortgage

      *  Terms range from 15 to 30 years.

      *  The loan starts at a fixed rate for a specified number of years.

      *  Once fixed rate terms expire, rates increase a small percentage until a max reached.

      *  $200,000 30 year loan fixed at 4.20% for five years would pay $978 for those first years.

      *  After five-year fixed period, loans increase approximately 0.25% every 12 months until the max.