Typically, most mortgages are 30-year mortgages, but you can choose between several term lengths to decide which loan term is right for you. You can then compare how different interest rates will affect your monthly payment. Entering your annual household income and credit score will show you how much you'll be able to reasonably afford.

A mortgage loan calculator calculator can estimate your principal and interest for each month, based on a specific interest rate. A loan with a longer term typically has a higher interest rate, but the principal payment isn't as high each month as with the payment for a shorter-term loan, since you have longer to pay off the principal.

Mortgage interest rates are gradually falling again. Here are three options with averages under 6% to consider now.