If you plan on keeping the property for a long period of time, a fixed rate mortgage is the best route to take. This way you can be sure that your interest rate will stay the same for the complete term of the loan. The three most common repayment terms are 15, 20, and 30 years.

30 Year-Fixed Rate Mortgage - The most common type of mortgage and the easiest to qualify for. The 30 year fixed mortgage makes it to keep monthly payments at reasonable level. This loan is recommended if you plan to keep the house for a long period of time. Another benefit of this loan is that it provides maximum interest deduction for tax purposes.

20 Year-Fixed Rate - This repayment term is recommended if the borrower wants a lower interest rate and want to own their property sooner than 30 years.

15 Year-Fixed Rate - This is best if you want very low interest rates. This route also allows the borrower to build equity in the property quicker. The equity may be a factor if the borrower has large expenses approaching in the future such as retirement or a child's education. The monthly payments are much more than those of a 20 or 30 year fixed-rate mortgage.

Other factors go into how much the monthly payments may be including how much down payment was put forth.

Adjustable-Rate Mortgage Changing market rates effect how much you pay each month. The interest rate may go down which could result in lower mortgage payments or it could go up. Adjustable-rate mortgages are usually referred to as ARMs. Many people choose an adjustable-rate mortgage because lenders initially offer a lower interest rate than the fixed-rate. ARMs can also allow people to qualify for bigger loans. You may want an adjustable-rate mortgage if you know your income will cover any increases in the interest rate, you plan to move in the next few years. Adjustable-rate mortgages on how much an interest rate can increase. The first cap sets the limit that your interest rate can increase during each adjustment time period.The second the maximum total amount of all interest adjustments over the complete life of the loan.