• Mortgage term. Mortgages are generally available for 15-year, 20-year, 30-year and possibly even 40-year terms. The longer the term, the lower the monthly payment but the more interest you will pay over the life of that loan.
• Interest rates. A fixed rate allows you to lock in a low rate for as long as you hold the mortgage.  This is usually a good choice if interest rates are low and if you plan to stay in the home awhile. An adjustable-rate mortgage (ARM) is designed so that interest rates will rise gradually but are limited to how much the rate can be increased and how frequently.  ARM's usually offer a lower rate in the first years of the mortgage and can be a good choice when interest rates are high or when you expect your income to grow significantly in the coming years, or you expect to move again within a few years.
• Balloon mortgages. Balloon mortgages offer very low interest rates for a short period of time, often three to seven years. Payments usually cover only the interest, so the principal owed is not reduced. However, this type of loan may be a good choice if you think you will sell your home in a few years.
• Government-backed loans. Government-backed loans, sponsored by agencies such as the Federal Housing Administration, the FHA (www.fha.gov) or the U.S. Department of Veterans Affairs, the VA (http://www.va.gov ), offer special terms, including lower down payments or reduced interest rates to qualified buyers.

Variations in interest rates, loan amounts and terms can significantly affect your monthly payment. For help in estimating your monthly payment, use the loan calculator provided here at BergenHomeTeam.com!