There is no one simple answer to this question. The right mortgage will vary with the circumstances you are currently facing, including:

• Your current financial profile
  
• How your finances may change in the future
  
• How long you intend to live in the home
  
• Your comfort level with having your payments change from time to time
  
• Types of Mortgages

Although you may see many different types of mortgages advertised, they all belong to just two families: those that carry fixed interest rates and those with rates that change during the course of the loan on a periodic schedule agreed upon by you and your lender.

Fixed-Rate Mortgage - A common type of mortgage is the fixed-rate mortgage.

Adjustable-Rate Mortgages - If you're buying for the first time, frequently moving, looking for a way to qualify for a more expensive house than you'd normally expect for your income level, or just looking for more creative ways to finance, you should look into adjustable-rate mortgages (ARMs). 

Balloon Mortgages   - With a balloon mortgage, you’ll enjoy the advantages of an interest rate lower than those on other loans with a large lump sum payment due at the end of your loan.