While the most popular terms are still 15- or 30-years, you can find a range of variations, including 10-, 20-, 25-, or even 40-year home loans.

In order to find the perfect match, ask yourself the following questions:

• How long do I plan to stay in the house?
• How much money can I afford to pay for my mortgage each month and still have enough to save for retirement and other important financial matters?
• How does the pay-off date fit in with my financial goals and dreams?

In most cases lenders will work with you take out a mortgage loan for a period of up to 30 years. The longer the term of the mortgage, the more interest you are likely to pay on your loan overall, but at the same time taking out your mortgage over a longer period means that you will enjoy lower monthly payments because the loan is spread out over a longer period of time.

It is important to consider what suits you best rather than rushing into a shorter mortgage term simply to try and get out of debt more quickly. If you are able to make higher mortgage payments without struggling financially, then you could benefit from a shorter mortgage term as this will cut the amount you pay in interest over the long term. However, if there is any doubt about whether you can afford the higher monthly payments you are far better off opting for a longer mortgage term and enjoying the peace of mind that you will be able to meet the payments and cope with any fluctuations in the case of an adjustable rate mortgage. It's okay to stretch out your mortgage term if you can't afford large monthly payments, but stretching it out more than 15 years will probably be more of a hindrance than a help, no matter how low your interest rates are.

Keep in mind as well that a long mortgage term means it will take much longer to build equity in your home, and that a longer term loan will most likely have a higher interest rate, since the bank has more of a chance of you walking away before the loan is paid. The simple answer is that you should make your mortgage term as short as possible. The larger the monthly payment you can afford, the shorter your term will be, and you'll receive better interest rates and equity in your home that much sooner. Also, with a short-term mortgage, the house will be yours to own that much quicker.