Choosing the right mortgage

You can get a mortgage direct from the lender (banks, building societies and specialist mortgage lenders), or you can use a mortgage broker. You can buy based on 'information' only or get advice and recommendation on a mortgage that suits your particular needs.

Once you decide on the mortgage you want, do your homework. Different lenders offer different rates, points, and fees. Ask around and compare. Understanding the benefits of different mortgage offerings can be a complex process. How do you figure it all out?

• Evaluate the pros and cons of a fixed-rate mortgage.
• Know all the parts of an adjustable-rate mortgage.
• Learn about balloon/reset mortgages.
• Understand how a reverse mortgage works.

From: FreddieMac http://www.freddiemac.com/corporate/buyown/english/mortgages/what_is/