Choosing a lender based on the lowest mortgage rates quoted might not be the best way to make your mortgage decision. On the Internet it’s possible to get rates quoted from hundreds of different lenders, so it looks easy to make the right choice. But because of the multitude of mortgage options available, it’s important to get mortgage advice that’s based on your individual situation.

The first thing you should know when selecting a mortgage, is that it’s very important to select the right mortgage for your situation. Everything depends on what your goals are in the long term, not in the short term. Going with the lowest rates might make you happy today, but you might be forced to take out another mortgage a few years down the road, because your current one has failed to make you debt free. That’s why it’s important to make an honest comparison between types of mortgages, not just rates.

Every mortgage has upsides and downsides. An adjustable rate mortgage, or ARM, is a very popular mortgage form. Especially when interest rates are low, ARM’s give you the possibility to profit the most from the interest situation. The downside of ARM’s is that you might be looking at higher monthly payments from one month to the next, because mortgage rates are adjustable.

Another mortgage form is the fixed rate mortgage. This is basically the opposite of an ARM. With a fixed rate, you know exactly what you are going to pay each month, because the interest rate stays the same. Most fixed rate mortgages require you to pay them off in 30 years. Some forms of fixed rate mortgages require you to make balloon payments at the end. Most of the times, you can make sure you can afford the balloon payment by investing in an insurance policy or investment plan each month. The downside of a fixed rate is the rigidity. You can’t change your mortgage easily when interest rates are down, so in those times you won’t be able to profit from good market conditions.

Getting the lowest rate is a good goal, but make sure you get the right kind of mortgage for your situation. If you don’t do your research, or search expert advice, you might be looking at trouble down the road.