Exploring mortgage options

If there is one certainty in picking out a home mortgage it is that the possibilities go far beyond the traditional 30-year fixed rate loan.

With historically low interest rates, lenders still say the 30-year or 15-year fixed rate loan is a smart choice for some homebuyers, including those planning to stay in their homes for a long time, use the properties as long-term rentals or who want to lock into low interest rates.

But if someone is looking to own the home for only three to five years, has an income that is sporadic or has trouble making a down payment, other options are out there including adjustable rate mortgages and no-down payment loans.

Before deciding on a mortgage, homebuyers need to ask how long they are going to be on the property and how much they want to put down.

An adjustable rate mortgage is a good idea for those who buy a home they expect to sell in three, five or seven years. Under an adjustable rate mortgage, the homebuyer pays a fixed interest rate for a period of time - three, five or seven years - and agrees to incur the market rate at the end of that time.

Another mortgage program allows homebuyers to pay off just the monthly interest of the loan.

Loans are available with 100 percent financing fees, which means homebuyers will not need a down payment.

Programs offering little or no down payment are not as expensive as they use to be.