Evaluate all available finances. Look for a fixed-rate mortgage first. Compare interest caps on adjustable-rate mortgages. Look for one that limits the amount the rate can rise each year, as well as over the life of the loan. Your payments will be larger than with a payment-capped mortgage, but the interest rate increases will be covered.
Compare payment caps.
With a payment cap, you will make smaller payments at the beginning of the loan, but the total interest will usually be more than the interest paid on rate-capped mortgages. Check the index used for rate increases. Ask the lender to share some recent examples of how the index has moved and the effect it has had on payments. Choose a mortgage with rate changes based on an index beyond an individual lender's control. Avoid a balloon-payment mortgage without guaranteed financing.