I am getting muddled on all the types of mortgages available. Any tips on how to choose the right one?

There are at times a dizzying array of customer-friendly mortgages, starting with the conventional 30-year traditional mortgage to graduated-payment mortgages to adjusted rate mortgages. Not to mention the FHA or VA government loans or owner-carry-back loans or zero-interest mortgages or wrap around mortgages. Add to that potpourri of options is lots of paperwork and indecipherable terminology—and a crush of probably more creative methods of financing. If you feel the pinch, you’re not alone.

Though lenders and sellers will regulate the terms and conditions of financing your home purchase, your savvy shopping skill can ferret out the financing and purchase options that best suit your needs. Your first step in comparison-shopping is to determine your loan amount and get a quote for a conventional 30-year mortgage. Using that quote as a springboard, check around with different lenders to see what their best deal is (many have their own Internet websites). Don’t be surprised that the rates and costs quoted will vary among different lenders in the same market area. Chart the nitty-gritty—the rate, points, and fees of each lender and pare the list down. Since interest rates fluctuate and can’t be predicted with certainty, don’t wait too long in choosing the right type of loan and lender.