What is a Mortgage?

Generally speaking, a mortgage is a loan obtained to purchase real estate.
The “mortgage” itself is a lien (a legal claim) on the home
or property that secures the promise to pay the debt. All mortgages have
two features in common: principal and interest.

What is a Loan to Title Value (LTV)? How does it determine the size of my loan?

The loan to value ratio is the amount of money you borrow compared with
the price or appraised value of the home you are purchasing. Each loan
has a specific LTV limit. For example: With a 95% LTV loan on a home priced
at $50,000, you could borrow up to $47,500 (95% of $50,000), and would
have to pay,$2,500 as a down payment.

The LTV ratio reflects the amount of equity borrowers have in their homes.
The higher the LTV the less cash home buyers are required to pay out of
their own funds. So, to protect lenders against potential loss in case
of default, higher LTV loans (80% or more) usually require mortgage insurance
policy.

What types of loans are available and what are the advantages of each?

Fixed Rate Mortgages: Payments remain the same for the the life of the
loan

Types

15-year 
30-year

Advantages

Predictable 
Housing cost remains unaffected by interest rate changes and inflation.

Adjustable Rate Mortgages (ARMS): Payments increase or decrease on a
regular schedule with changes in interest rates; increases subject to
limits

Types

Balloon Mortgage- Offers very low rates for an Initial period of time
(usually 5, 7, or 10 years); when time has elapsed, the balance is clue
or refinanced (though not automatically) 
Two-Step Mortgage- Interest rate adjusts only once and remains the same
for the life of the loan 
ARMS linked to a specific index or margin

Advantages

Generally offer lower initial interest rates 
Monthly payments can be lower 
May allow borrower to qualify for a larger loan amount