Ask the expert: What type of mortgage do you advise? There's no easy answer to your question. To get the most attractive rate and terms on your next home loan, you'll need to compare options on several types of mortgages. Since each mortgage product is designed to meet specific needs, you and the lender will evaluate your particular wishes and circumstances in order to find the product that is right for you. Interest rates are determined by the term of the loan, the amount of the down payment, and your credit score, among other factors. Fixed-rate home loans are typically available with terms of 15, 20, 30 or 40 years. Generally, lower interest rates are offered for mortgages with shorter terms. Adjustable-rate mortgages (ARMs) have a variety of terms. They include a lower up front rate, but that interest rate will increase during the life of the loan according to your contract or as market interest rates change. Compare rates from several lenders. Whether you are refinancing or searching for a new home loan. Only the lender you contact can give you the information you want. Often, your local bank or mortgage company will be your best choice. Mortgage companies have a wide variety of loans. Remember that if you are paying less than 20 percent down, you'll also be paying for mortgage insurance. FHA loans are fairly easy to get. While their mortgages haven't changed much, they do have their advantages: They have less-stringent qualification and credit requirements, and the required down payment is lower as well. The drawback is that they take longer to arrange and close than a loan from your local lender would. It takes time and effort to evaluate the market for what may be the largest purchase you'll ever make.