Advantages

	Monthly payments fixed over life of loan
	Interest rate does not change
	Protected if rates go up
	Can refinance if rates go down

Disadvantages

	Higher interest rate
	Higher mortgage payments
	Rate does not drop if interest rates improve

Advantages

	Lower initial monthly payment
	Lower payment over a shorter period
	Rates and payments may go down
	May qualify for higher loan amounts

Disadvantages

	More risk
	Payments may change over time
	Potential for high payments if rates go up

Advantages

	Lower initial monthly payment
	Lower payment over a shorter period
	May offer the option to convert after initial term.

Disadvantages

	Risk of rates being higher at the end of the initial fixed period
	Risk of foreclosure if you cannot make balloon payment or if you cannot refinance or if you cannot exercise the conversion option

Advantages

	Lower down payment
	Easier to qualify
	Sometimes you may get lower rates

Disadvantages

	May be subject to income and property value limitations
	Some programs which have government subsidies may have a recapture tax if you sell the house too early.

Advantages

	Don’t need to verify income
	Faster approval

Disadvantages

	Higher rates
	Higher down payment

Advantages

	No closing costs
	Less money required to close

Disadvantages

	Higher rates
	Higher payments

Advantages

	Potential to improve credit if you pay on time.
	Reduced monthly payments through debt consolidation

Disadvantages

	Higher rates
	Terms may not be as favorable
	Harder to get long term fixed loans
	Loans may have prepayment penalties

Advantages

	Fixed payments
	You only borrow what you need
	Pay interest only on what you borrow
	Flexible access to funds
	Interest may be tax deductible

Disadvantages

	Higher interest rates than on 1st mortgages
	Harder to refinance your first mortgage