30-Year Mortgage
This is by far the most common mortgage and the easiest to understand. Your loan amount is amortized over thirty years at a fixed interest rate with a payment that remains the same over the life of the loan.

Pros:	Cons:
Payments are generally lower than other options because the amortization period is longer.	A longer amortization period equals more interest paid.
Your payment and interest rate is fixed for the life of the loan.	If you purchased your home when rates were high, you’ll continue to pay the high interest rate even when rates drop.
For the first few years, the majority of your payment goes to interest that could result in a large tax deduction.	It takes longer to build equity in your home.

15-Year Mortgage
This mortgage is based on the same principles of the 30-year mortgage with the main difference being the loan is amortized over fifteen years rather than thirty.

Pros:	Cons:
Less interest is paid because the amortization period is shorter.	Payments can be considerably higher than those of a 30-year mortgage.
Your payment and interest rate is fixed for the life of the loan.	If you purchased your home when rates were high, you’ll continue to pay the high interest rate even when rates drop.
Build equity quicker than with a 30-year mortgage.	You will not have as much tax-deductible interest to write off.

Adjustable Rate Mortgages
Adjustable Rate Mortgages, commonly referred to as an ARM loan, has an interest rate set for a certain period of time. After that time period, the interest rate usually adjusts on an annual basis. The interest rate is tied to an index such as the one-year Treasury Bill. The lender then adds a margin, which results in the interest rate:

(Index + Margin = Interest Rate)