Hybrid mortgages Hybrid mortgages usually offer a lower fixed rate for a certain amount of time -- normally three, seven, or ten years -- then adjust every year afterwards until the end of the mortgage term.

Should you choose a fixed rate or an adjustable rate? Click here for the answer!

Finding a mortgage can often be the most challenging part of buying a home, so it's helpful to know some basics before you start looking for one.

A mortgage is a long-term loan, with a term , or duration, usually of 15 or 30 years. You'll pay your mortgage in monthly installments, which consist of a portion of the principal -- the amount you borrow -- plus interest , which is calculated as a percentage of your principal. In most cases, your monthly installment will also include additional amounts to cover the cost of real estate taxes and your homeowners insurance, too.

Most mortgages either have a fixed rate or adjustable rate. With a fixed-rate mortgage, your loan has one interest rate for the entire term. With an adjustable-rate mortgage (ARM) , your interest rate typically starts out lower than current fixed-rate mortgages, but fluctuates during the term of the loan based on changes in what borrowing costs at the time.