Mortgage ratesBuying a house is a delicate process that requires careful research and preparation. However, given that one in three American retirees have an ongoing mortgage, many people fail to do so. Such worrying statistics only show that many homebuyers rush into the process unprepared.

Carrying a home loan into retirement can breed a considerable amount of trouble and lower your standards of living. Primary Residential Mortgage, Inc. and other home loan providers in Portland list some ways to help avoid such a situation:

Improve your mortgage knowledge

Not all home loans are created equal and as such, you need to pick one that suits your financial situation. Picking the wrong plan could cost you the house if you ran into financial trouble somewhere down the road. Fixed rate mortgages make a safer bet as the interest rate never changes over the life of the mortgage.

An adjustable rate mortgage depends on the prevailing market rates, which means they can either go up or down. Like the name suggests, a hybrid adjustable rate mortgage is a blend of the two plans. Research on the merits and drawbacks of each plan before deciding.

 Pick the right payment term

Choose from the most popular mortgage terms — a 10, 15, 30, or 40-year plan. If your finances allow, put down a hefty deposit and take the shorter repayment periods. This comes with high monthly payments, but boasts a lower interest rate.

If your finances are on a shaky ground, choose a home loan with a longer repayment period. While the latter allows you to buy a pricey home with low repayments, they carry a higher interest rate. The longer the payment duration, the higher the amount of interest you will have to pay.

With many mortgage plans available, picking one that suits your need might prove to be tricky. Therefore, it's of great importance to understand the terms and implication of each plan before making a choice.