Fixed-rate mortgage
The fixed-rate mortgage has long been the most popular home financing product.  With an interest rate that never changes, it provides stable, predictable monthly payments throughout the life of the loan.  Your monthly payments won't decrease if market rates go down, but you'll have the comfort of knowing you are protected if rates go up. 

If you plan to stay in your home for more than ten years (depending on the ARM rates at the time) and prefer the security of stable payments to being at the mercy of the market, a fixed-rate mortgage may be the best option for you.

Adjustable-rate mortgage (ARM)
An adjustable-rate mortgage has a low starting rate, so your initial monthly payments on an ARM will be lower than on a fixed-rate loan for the same amount. And because the amount you can borrow is based partly on how much you can pay each month, your maximum loan amount will probably be higher with an ARM.

Here's how it works:  

• The interest rate starts out lower than the rate on a fixed-rate mortgage, then adjusts regularly based on market indicators.
• The starting rate stays fixed for between three months and 10 years, depending on the ARM product.
• Most ARMs adjust annually, but some adjust on a semi-annual or monthly basis.
• Individual adjustments are capped at a certain amount, and the rate can never exceed the lifetime cap.

Keep in mind that the interest rate and monthly payments can increase during the loan term. You may get the most value from an ARM if you plan to move before the end of the fixed-rate period, or if you're buying at a time when rates are relatively high.

Home equity financing
As you repay your mortgage, you will gradually build up equity in your home.  You can borrow against that equity when you need cash, using either a loan or a line of credit.

• Home equity loans give you the cash you need as a single up-front payment, which you can repay at a fixed rate.  If you know exactly how much you need to borrow, a home equity loan may be the best option.
• Home equity credit lines give you a revolving source of cash that you can draw from as you need to, up to a maximum amount.  The line carries a variable rate with an interest-only option, and you pay interest only on what you actually use — not the total amount of the credit line.

Refinancing Services
Refinancing is essentially paying off your existing mortgage and taking out a new one.

There are several reasons for a refinance:
   1.) Fix the term of the loan for a longer period of time - reducing the risk associated with the existing loan
   2.) Using the equity in your home to get cash out or pay off exisiting debt
   3.) Lower your rate - here you may go from a fixed rate to an adjustable or interest only loan in order to lower your payment

By refinancing an adjustable-rate mortgage into a fixed-rate mortgage, the risk of interest rates increasing dramatically is removed, thus ensuring a steady interest rate over time.

Another type of refiinance is a cash out refinance. This type of refinance may not help lower the monthly payment or shorter mortgage periods. It can be used for home improvement, credit card and other debt consolidation if the borrower qualifies with their current home equity; they can refinance with a loan amount larger than their current mortgage and keep the cash difference.

Some people may not want to be in the house forever; therefore, their main concern would be to get the lowest payment possible at the time. In order to get the lowest payment, an ARM or interest only loan may be the best option for the refinance.