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Unless you’re able to pay for your new home with a cash lump sum, you’ll likely have to take out a mortgage. Basically, these are long-term loans offered to new home buyers from banks and other financial lender. As with most loans, though, the interest rates and terms vary greatly depending on which mortgage you decide to go with.

Buying a home is a long-term investment which builds the roots of stability for you and your family. Although some individuals remain hesitant to purchase new homes with the recent drop in the housing market, most analysts say it’s a safe investment now. In fact, the historically-low interest rates create an ideal environment for new home buyers. The bottom-line is that if you’re looking to buy a home, now’s the time to do it.

You probably have much difficulty finding a mortgage provider offering a low interest rate. With that said, it’s still important that you do some comparison shopping to find the one that’s right for you. A one percent or even a fraction of a percent in the interest rate can translate into thousands of dollars in a traditional 30 year loan. So while shopping around at different mortgage providers may be more work, it could prove to be well worth it in the long run.

Along with the interest rate, you should also consider the length of the mortgage. As you can expect, the shorter the loan, the higher your monthly payments are going to be. Typically, the mortgage provider will offer a variety of lengths available for home buyers to choose from. Some of the most common terms are 15, 20, 30 and 40 year loans. Don’t be afraid to go with the longer mortgage terms, as you can still sell your home and pay off the remaining balance after you’ve lived in it for a while and generated some equity.

When finalizing a mortgage, you’ll have to sit down a loan officer while signing a thick stack of papers. Not only does this cost you your time, but you’ll also have to pay a fee known as closing costs. Depending on your provider, terms of the loan, etc., this fee can range anywhere from a $300 to over $1,000. Check with the various loan providers to see how much their closing costs are before making your mortgage choice. In addition, you may also be able to negotiate with the seller and have them pay for your closing costs.

There really isn’t a whole lot that goes into choosing a mortgage. Like most large purchases, you should do some comparison shopping to find the mortgage with an attractive interest rate, preferred term length and low closing cost. Spend a few days calling around to the various mortgage providers in your area and ask them the questions stated above. Remember, though, the most important feature to look for in a mortgage is a low interest rate. Even small, subtle differences in the interest rate of a mortgage can translate into thousands of dollars over the course of the loan.