Do some homework and figure out which loan is right for you. To get started, you can check out the accompanying summary of loan types. The more knowledgeable you are before you approach lenders, the better deal you're likely to get. Work the phones Interview lenders over the telephone before meeting with them in person. Fixed versus ARM Fixed-rate loans look like a good bet these days.
ARMs still deserve consideration.
First, they're easier to qualify for, have lower starting interest rates and often have lower loan fees. If you plan to move within five years, an ARM will probably be cheaper than a fixed-rate loan. A compromise could be a so-called hybrid ARM, which offers fixed payments for three to seven years and then adjusts to current interest rates. Let lenders and brokers know you're shopping around. But be skeptical, particularly if someone quotes you a rate that is more than half a percentage point lower than the others.