While rates are low, a Fixed Rate is usually the best choice for borrowers, because the rate never changes during the entire term of the loan.  Usually, the amortization (payment of principal and interest over time) is set so that equal monthly payments reduce the loan balance to zero over the full term.  However, the payments might change if the payment is not a fully amortizing, fixed payment plan.  Some alternatives are "temporary buy-down" mortgages that have a lower monthly payment in the beginning - - while the rate is fixed for the entire life of the loan - - and "graduated payment mortgages" that start low and increase steadily in small increments over time.  Fixed rate/fixed payment mortgages offer the safest and most conservative option, if not always the lowest rate.

The term can be from as short as five years to as long as 40 years, but most people choose between 15 and 30 years.

If you are planning to keep the mortgage for less than ten years, an Adjustable Rate is often the best choice for borrowers, because the rate during the initial fixed period can be substantially lower than that of a comparable fixed rate.  The rate never changes during the initial term of the loan, which can range from one year to ten years.  Most people choose a fully amortizing loan so that the payment covers principal and interest like a fixed rate.  However, the payments might change if you include extra principal in your payment or choose to have a loan that doesn't cover full principal and interest.  The rate will start adjusting after the initial term of the loan, usually annually thereafter.

Most ARM loans are a 30-year term.

For borrowers over 62 years of age (the youngest of the two if married), this mortgage is formally known as a Home Equity Conversion Mortgage because the owner converts the home equity into cash.  Although the closing costs are steep in order to pay for the FHA upfront mortgage insurance premium, title insurance, loan origination fee and assorted third-party reports, it is the best way for a senior to access equity.  The main feature of the Reverse Mortgage is that the home owner never has to repay the mortgage while permanently living in the home as a primary residence.  And there is flexibility in how the funds are received:  lump sum, monthly installments that last from a set term all the way to "lifetime", line of credit, and a combination of these.  One can also choose between a fixed rate (limited to the lump sum equity draw) and adjustable rates (for all lines of credit and monthly draws).  One thing to keep in mind, though, is that the younger the borrower, the less received from the mortgage, so somebody in his 60's will receive considerably less than somebody in his 90's.