If you're a first-time home buyer or are looking to lower you mortgage payment substantially, there are now several options to choose from. However, you need to understand that these gimmicky loans could cost you a lot more later.

The first of these gimmicky loans is an adjustable rate mortgage (ARM) with negative amortization. Negative amortization is a fancy way of saying that your monthly mortgage payments aren't enough to cover the monthly interest owed. You get a significantly lower monthly payment but the interest you don't pay is tacked on to the principle owed.

If your home continues to increase in value, you'll be okay because even though the principle owed is increasing each year, so is your equity. On the other hand, if the value of you home stays the same or decreases, you can end up owing more than your home is worth