If you’re in the market for a new home, you figure it must be less expensive to buy now than when rates go up even further, assuming housing prices stay strong in the near term, something economists expect will happen. That may be the only thing you can be sure about. But finding the best type of mortgage for your situation can feel a little like finding the perfect ecru in a sea of beige. It doesn’t have to be that way. If you ask yourself the right questions, you at least can narrow your search to the best category of[tag] mortgage[/tag] for which you need to comparison shop.

Keep in mind, your [tag]mortgage payment[/tag] is only part of what you’ll pay to live in your home. You also should budget for furniture, your house’s upkeep and the general expenses of life (like, say, food). A [tag]30-year mortgage[/tag] will have a lower monthly payment and a higher interest rate than a [tag]15-year mortgage[/tag]. So you’ll have a smaller monthly obligation but you’ll pay more for your house over time because you’re paying it off with interest for a longer period. Conversely, a 15-year mortgage will have a higher monthly payment and a lower interest rate so you’ll pay less for your house because you’re paying it off in a shorter period. “For most home buyers, especially first-time buyers, taking a 15-year (or 20-year) mortgage is out of the question,” said Keith Gumbinger, vice president for mortgage tracker HSH Associates. The higher [tag]monthly payment[/tag]s are often too much to handle for these types of buyers.

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