Mortgage lenders offer many features and restrictions that can be added to a variety of mortgage programs, but the following eight mortgage loans are the basic types you will encounter. No single loan is best for all circumstances; some loan types work better than others, depending on individual circumstances and lifestyles. Buying for the long haul Loan : 30-year fixed rate. Why : Financial peace of mind can be worth the higher interest rate that comes with an interest rate that won't change for three decades. Job with good but inconsistent income Loan : Option adjustable rate mortgage (ARM). Why : These loans, considered among the riskiest offered in recent years, originally were designed for people with incomes that vary a lot from month to month. Each month you have a choice of payments: the full amount needed to pay off principal and interest as scheduled, an amount that covers only the interest owed that month, or an even smaller amount that doesn't even cover interest ow