I'm looking to buy my first home.  Can you tell me about the different types of mortgages?
user
Sure, there are basically two kinds: Conventional and FHA.  A conventional mortgage has a fixed interest rate, and there's no protection from market fluctuations.  FHA is government backed, so you get a guarantee on your interest rate.  But, the requirements are more strict and it's hard to qualify, unless you have a lot of income.
assistant
Does an FHA loan have a variable interest rate?
user
Yes, for the last several years they've switched to a 5 year variable rate mortgage.
assistant
And what exactly is a variable rate mortgage?
user
Basically, it's a mortgage where the interest rate is set at the beginning of the loan, and it adjusts after that.  The bank or other lender will notify you about a rate change ahead of time, so you can make adjustments to your payment if need be.
assistant
I'm looking to buy my first home.  Can you tell me about the different types of mortgages?
user
Sure, there are basically two kinds: Conventional and FHA.  A conventional mortgage has a fixed interest rate, and there's no protection from market fluctuations.  FHA is government backed, so you get a guarantee on your interest rate.  But, the requirements are more strict and it's hard to qualify, unless you have a lot of income.
assistant
Does an FHA loan have a variable interest rate?
user
Yes, for the last several years they've switched to a 5 year variable rate mortgage.
assistant
And what exactly is a variable rate mortgage?
user
It's a loan where the interest rate is decided at the time of the loan, based on an index.  You could imagine a variable rate mortgage like a credit card: the amount you owe at the end of a month depends on how much you pay on your credit card.  The index is usually something like the LIBOR (London Interbank Offer Rate).
assistant
I'm looking to buy my first home.  Can you tell me about the different types of mortgages?