Finding the right mortgage is not like getting the best price on school supplies or a new big screen TV. No, mortgages and mortgage pricing is far more confusing.

Mortgage loans can be structured in a variety of ways. Mortgage pricing can also be done and presented in as many ways. As a result, even if you do get several mortgage quotes to compare you may be comparing apples to oranges.

If you are considering a mortgage to refinance your home or purchase a new home, then you need to start with a plan.

Different Types of Mortgages

Finding the right mortgage for your home refinance or home purchase should start with some basic questions:

• Should I get a fixed-rate or adjustable rate?
• Should I pay principle and interest, interest-only, or pay option?
• Should I pay points?
• How big should my down payment be?
• Should I escrow property taxes and insurance?
• Should I lock my mortgage rate? If so, when?
• Should I provide full-doc, no-doc, or stated-income?

The answers to each of these questions will impact your ultimate mortgage rate and payment--your mortgage price.

Your Position in the Mortgage Market

Another thing that will impact your mortgage price is where you are in the loan "pricing matrix." This is mortgage jargon for how risky your financial profile is to the mortgage lender. Basically, the probability you will repay the mortgage on-time and in-full.

Here are a few examples to understand how a mortgage lender with view your mortgage request:

1. Credit score: Your credit score (sometimes called FICO score) is a big factor. A score of 720 is typically considered excellent, while scores below 620 are considered poor (sometime referred to as Subprime). This score does not necessary mean that you can't get a mortgage it just means that if your a score is lower you will pay a higher mortgage rate.

2. Property-type: Primary resident, owner-occupied, single-family detached are all adjectives to describe low default risk to a mortgage lender; therefore, mortgage on these property types will bear a lower mortgage rate. Any property that is considered a second/vacation home, investment, multi-family, farm, or commercial is likely to carry a higher mortgage rate.

3. Cash-out: Taking out a little cash with that home refinance is also likely to increase your mortgage rate. Consolidating debt or building a little cash reserve might make sense, but it will hike your interest rate to compensate for the lower equity left in the home.

4. Down payment: The magic number is 20% of the value of your home. If you put down less than that you are going to pay a higher rate and most likely payment. There are two reasons for this: 1.) You are going to have less equity in the home increasing the lender's risk in a potential foreclosure situation, and 2.) You are going to have to either pay private mortgage insurance (PMI) or add a home equity loan or line to make up the difference--adding to your monthly payment.

5. Documentation type: This part of the mortgage process is a real hot button in the market today. No- or low-doc loans were very popular during the home refinance boom. Unfortunately, many of these loans were made on fraudulent representations by mortgage lenders and borrowers regarding income and assets. Therefore, if you are not providing full documentation of your income and assets you are going to pay a higher mortgage rate.

Mortgage Pricing and Comparing Quotes

The number one thing to remember about comparing mortgage offers is to get apples-to-apples. Once you understand the type of mortgage you want and the type of borrower comparing quotes is simplified.

A mortgage has a few key components that you need to set equal to do an accurate comparison:

1. Term: Make sure the mortgage quotes you are comparing have the same term (i.e., 30-year, 15-year, or 5-year with a final ballon payment). Comparing a monthly payment without understanding how long your principle and interest repayment period is can be misleading.

2. Mortgage rate type: Is your monthly mortgage payment based on a fixed-rate or an adjustable-rate. If it is adjustable, when and how often can it adjust and what is the maximum rate it can adjust to? Again, looking at a fixed-rate versus an adjustable rate or even a 5-year versus a 3-year adjustable-rate can be confusing.

3. Mortgage closing costs: The key point here is that most mortgage settlement costs (i.e., title, lenders fees) are negotiable. So, look at these in the comparison. However, the key point here is are they quoted as been paid out of pocket or are they rolled into the mortgage--this can make a big difference in your mortgage pricing.

4. Mortgage rate: This is what most people focus in on first. However, to get the best overall mortgage deal it should be the last thing you look at, once you have all the other variables in your mortgage quotes set to equal.

Finding a Mortgage Lender

There are many options for finding a mortgage lender. You can visit your local bank, find a local mortgage broker, or call on one of these mega-banks. Unfortunately, these options can leave you doing much of the leg work to really shop for the best mortgage.

Shopping for a mortgage online can make you more efficient at collecting several mortgage quotes to compare--reducing your time and frustration. And looking for your mortgage on the Internet does not rule out any of the options to work with banks or mortgage brokers, even local ones. It just gets you to them quicker without running all over town. Most local mortgage lenders have figured out that their customers want the convenience of looking for mortgages online.

Getting Mortgage Quotes

Actually getting a mortgage quote can be tougher than you think. Mortgage lenders hate to be shopped against their competitors. But, you need the information to protect yourself so get a quote, which means:

• In writing. Preferably a Good Faith Estimate (GFE)
• Complete. Quote should include all fees and any unique features (i.e., prepayment penalties)
• Current pricing. Mortgage prices move everyday and throughout the day
• Deal ready. Lender should be ready and willing to lock in this rate/quote

The most important thing about getting mortgage quotes is to get something you can compare. Also, since you expect prompt attention it is also good courtesy to be timely in your comparison and follow-up to the mortgage lender. Like I said, they are competitive so always give them one last crack at their best offer.