Shopping for a mortgage doesn't have to be a hassle. The process is greatly simplified if you know what you want before you begin to contact mortgage brokers for quotes. There are many more mortgage products available now then there were ten years ago and sometimes they are confusing.

Today, we will focus on two of the main types of mortgage products: the 30 year fixed and the ARM. The 30 year mortgage is old faithful. This is the type of mortgage that your parents had, and often that is what they suggest when you begin to shop. Lets be clear, it is possible that the 30 year mortgage could be the worst product for you, but for some it is the best option. People that are a good fit for the 30 year mortgage generally have more than one of these traits:

• They plan on being in their new home for a long time, lets say more than 5 years
• They like to play it safe and they won't loose sleep over paying extra money each month because they like the protection
• People that prefer a regimented "I like to know that my payment is going to be the same each month" type of mindset

The ARM, or Adjustable Rate Mortgage, is great for people that are the exact opposite from the 30 year people. They want a more aggressive product and want to take a little risk in an effort to save some money. ARMs are offered generally in 3, 5, 7 and sometimes 10 year fixed cycles. At the end of your fixed cycle, the mortgage begins to adjust which means your payment could decrease, but typically increases. These loans are great for people that only plan on being in their home for a short period of time and lets face it, in todays market that is most of us!

By Steve Komar, Mortgage Broker