There are a number of ways to finance a house. Let us look at the different options available. Depending on your own financial circumstances choose the one that fits your needs.

1) Conventional Fixed 30 year Mortgage: Usually used to purchase a home that you will live in, the interest rate is determined by your credit score, which is affected by your use of credit in the past. Including your ability to pay current outstanding credit card balances and other forms of fixed and revolving loans.

2) Interest only or construction loans: While this option does make your monthly payment seem attractively low, you must consider this loan as a temporary loan because your principal balance owed will stay the same or in some cases actually increase during the term of the loan.

3) 15 year fixed, This option from an asset building stand point for home owners who can afford the cash flow set back on a monthly basis makes the most sense. You end up spending a lot less in financing charges with this option but have higher monthly payments.

4) You can also pay for your house using credit cards, this is by far the poorest choice in financing options.  Even if they cards have a low fixed rate for a set period of time, you will eventually run out of new cards to transfer the balances to and you will need to get  a conventional loan to stabilize your monthly payments and cash flow.