Knowing how these pieces work together can help you chose the best mortgage.

Mortgage Type: The type of mortgage depends on whether private investors or a Government Agency is involved as well as the amount of the loan.

FHA Mortgage: Typically, easiest to qualify for and is a popular type of mortgage loan for first-time home buyers. Requires a low-down payment and features flexible credit guidelines and allows for a lower FICO® score. However, this type of mortgage tends to be more costly over time because it requires an Up-front Mortgage Insurance premium which is usually financed into the loan and also requires monthly mortgage insurance payments which will continue for the life of the loan.

You can obtain an FHA loan from any FHA-approved lender. These loans are insured by the Federal Housing Administration (FHA), which just means that the FHA protects lenders against loss from homeowners who default on their loans.

Conventional Mortgage: Harder to qualify for, but they typically cost less over time as compared to an FHA mortgage. You can avoid paying Private Mortgage Insurance (PMI) if your down payment is 20% or more and this can save you hundreds of dollars on your monthly mortgage payment.

Jumbo Mortgage: if you need a mortgage that exceeds the current conforming loan limit, a fixed rate or adjustable rate jumbo mortgage will allow you to purchase a more expensive property, but also requires a larger down payment and has more stringent credit guidelines.

VA Mortgage: These mortgages are exclusively for Veterans, eligible surviving spouses and active-duty service members. They offer less restrictive credit guidelines and the opportunity to purchase a home with $0 down payment and do not require private mortgage insurance.

Interest Rate Type: There are two types of mortgage rates: Fixed and Adjustable (ARM). You will want to explore and chose the type of rate that best matches your goals.

A fixed Rate: will stay the same for the life of the loan. This option keeps the month-to-month mortgage payment consistent and predictable. This is a great option for homeowners who plan to stay in their new home for a long time and want a regular fixed payment and not have to worry about the payment increasing over time.

An Adjustable Rate (ARM): will stay the same for the first 5, 7 or 10 years of the loan. Then, the rate will adjust up or down once (or 2 times) per year depending on the type of ARM chosen and on market conditions. An adjustable-rate mortgage offers the opportunity to get the lowest rate possible and is a good choice for homeowners who plan on moving or refinancing before the initial fixed-rate period ends.

Term: The term is the length of the mortgage. Most fixed-rate mortgages have 30 or 15-year terms. Aiello & Associates offers a Flex-Term option where you can choose the exact term you need in 1-year increments.

30 Year Fixed Rate Mortgage: If you want to settle down for the long haul, a 30-year fixed rate mortgage will be the way to go. This mortgage offers a steady interest rate so that you can look forward to consistent monthly payments for many years to come, providing you with peace of mind and a consistent budget. We recommend this type of home loan if you're planning to stay in your home for a minimum of 5-10 years.

15 Year Fixed Rate Mortgage: Pay off your home twice as fast with a 15-year fixed rate mortgage. Your rate stays the same throughout the life of the mortgage, giving you secure and predictable monthly mortgage payments and less interest to pay.