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A mortgage is a lien on a property/house that secures a loan and is paid in instalments over a set period of time. The mortgage secures your promise that you’ll repay the money you’ve borrowed to buy your home. 

There are different types of Home Loans that have advantages and disadvantages. Some of the types of mortgages are fixed-rate(FRM), Adjustable rate(ARM), Option(flexible payment)ARM, balloon mortgages, biweekly payment mortgages, FHA mortgages, VA mortgages, wrap-around mortgages, interest only mortgages, and simple interest mortgages just to name a few.    

A fixed-rate mortgage has fixed rate payments over the life of the loan. The adjustable-rate mortgage is the type of mortgage in which the interest rate paid on the outstanding balance varies according to the standard against which investment performance is measured.  The initial rate is normally fixed for a period of time then is reset periodically, often every month.  This rate paid by the borrower is based on the measurement plus an additional spread called the ARM margin.  

Option(flexible payment) ARM is an adjustable rate mortgage on which the rate adjusts monthly with no adjustment caps and allows borrowers to make very low initial mortgage payments that rise over time. 

The balloon mortgage looks like a 30-year fixed-rate mortgage, but after a specific period; 5 or 7 years, the outstanding balance (the "balloon") has to be repaid in full.   

Biweekly payment plans offered by lenders and third parties that put a savings discipline on borrowers that can be useful, but the borrowers not needing this discipline can roll their plan.  Making extra payments to be applied to principal whenever they receive a bonus. 

For the lenders the FHA mortgage insures them against loss in the event that borrowers default on their loans.  FHA mortgages help the low-and-moderate income population to become homeowners who might not make it because they have shaky credit or can’t come up with the cash needed for the down payment.  

The VA mortgages helped the war veterans to become homeowners that didn’t lend to them, but guaranteed the lender against loss.  The maximum interest rates in the VA loan were designed to protect borrowers from being overcharged, but now the loan can’t be larger than the appraised value of the house and the veteran can pay more without losing the loan by paying the difference in cash.  This loan transaction in which the lender assumes responsibility for an existing mortgage is the wrap-around mortgage.  It’s attractive to lenders because they can leverage a lower interest rate on the existing mortgage into a higher yield for themselves.

Monthly mortgage payments that don’t include any repayment of principal for some period is called "interest only".  During that period, the loan balance remains unchanged.  On the simple interest mortgage, you will be paying more interest on the simple interest mortgage unless you systematically make your monthly payments before the due date. Make sure you select the mortgage that is right for you, your future plans, and your financial situation.