While trying to find the lowest rates, many homeowners fail to examine the type of mortgage, and which type of mortgage is best suited to their needs. Whether you are buying a new home or refinancing, it is important to understand the different mortgage types, and evaluate which one best meets your needs.

The most important decision is that between fixes rate mortgages and adjustable rate mortgages (or ARMs).

Fixed rate mortgages have interest rates set at the time of purchase, and these interest rates remain fixed. By getting a fixed rate mortgage, the borrower can