There are a number of types of mortgages available for home buyers, but the two most common types are fixed-rate and adjustable-rate. With a fixed–rate mortgage, you'll always know what your monthly principal and interest payments will be. You can also lower your monthly payments by spreading them out over a long period of time. You can choose a 10–, 15–, 20–, 25– or 30–year term, and low down payment options may be available. Adjustable-Rate Mortgages (ARMs) offer lower early payments than a fixed–rate mortgage. If you're planning on owning your home for a short period of time, an ARM may be a good option. Your interest rate is fixed for 5, 7 or 10 years (based on the chosen product), and becomes variable for the remaining loan term, adjusting every year thereafter. For example, a 5/1 ARM would have a fixed interest rate for the first five years and then convert to an adjustable rate, with annual adjustments for the remaining term of the loan. You can choose a 5/1, 7/1 or 10/1 ARMs with a 30–year term. When deciding the best mortgage option, take a look at your budget and determine how much you can pay each month. Your Chase Home Lending Advisor can also help you choose the best option for your needs.